#XAGUSD @ 18.593 Silver extends the overnight retracement slide from the $19.00 neighbourhood. (Pivot Orderbook analysis)

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• Silver extends the overnight retracement slide from the $19.00 neighbourhood.
• The technical setup favours bears and supports prospects for additional losses.
• A sustained move beyond the $19.00 mark is needed to negate the negative bias.

The pair currently trades last at 18.593.

The previous day high was 18.93 while the previous day low was 18.55. The daily 38.2% Fib levels comes at 18.78, expected to provide resistance. Similarly, the daily 61.8% fib level is at 18.69, expected to provide resistance.

Silver comes under fresh selling pressure on Wednesday and extends the previous day’s modest pullback from the vicinity of the $19.00 mark. The white metal remains on the defensive through the first half of the European session and is currently flirting with the daily low, around mid-$18.00s.

From a technical perspective, the recent bounce from a nearly three-week low touched last Friday faces rejection near the 100-hour EMA. Meanwhile, oscillators on the daily chart are holding in the bearish territory and have again started gaining negative traction on the 1-hour chart. This, in turn, supports prospects for an extension of the intraday depreciating move.

Hence, a subsequent slide back towards challenging a pivotal support, around the $18.00 mark, remains a distinct possibility. Some follow-through selling will be seen as a fresh trigger for bearish traders and drag the XAG/USD back towards the YTD low, around the $17.55 area. Spot prices could eventually drop to the next relevant support near the $17.00 round figure.

On the flip side, the 100-hour SMA, around the $18.90-$19.00 area, might act as an immediate hurdle. A sustained move beyond might trigger a short-covering rally and lift XAG/USD towards the $19.70-$19.80 supply zone en route to the $20.00 psychological mark. The latter should act as a pivotal point for bulls, which if cleared should pave the way for further gains.

The subsequent move up has the potential to lift the XAG/USD further beyond the $20.50 intermediate resistance, towards reclaiming the $21.00, which coincides with the 200-day EMA.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 18.54 at the time of writing. Pair opened at 18.73 and is trading with a change of -1.01 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 19.36, 50 SMA 19.25, 100 SMA @ 19.79 and 200 SMA @ 21.77.

The previous day high was 18.93 while the previous day low was 18.55. The daily 38.2% Fib levels comes at 18.78, expected to provide resistance. Similarly, the daily 61.8% fib level is at 18.69, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 18.54, 18.36, 18.16
• Pivot resistance is noted at 18.92, 19.12, 19.3

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