#XAGUSD @ 21.601 Silver keeps Friday’s pullback from five-month high inside a one-week-old bullish channel., @nehcap view: Pullback expected (Pivot Orderbook analysis)

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• Silver keeps Friday’s pullback from five-month high inside a one-week-old bullish channel.
• RSI (14) fails to back higher-high on prices, teases pullback towards the key SMAs.
• Buyers can aim for June’s top on crossing $22.20.

The pair currently trades last at 21.601.

The previous day high was 22.06 while the previous day low was 21.28. The daily 38.2% Fib levels comes at 21.58, expected to provide support. Similarly, the daily 61.8% fib level is at 21.76, expected to provide resistance.

Silver price (XAGUSD) remains on the back foot around $21.55 inside a one-week-old bullish channel during Monday’s Asian session.

In doing so, the bright metal keeps the previous day’s pause in a run-up at the highest levels since June while justifying the bearish RSI divergence, a condition where the higher highs in prices fail to gain support from the RSI (14) and suggest a pullback.

That said, the quote’s latest weakness aims for the aforementioned bullish channel’s lower line, around $21.30.

Also acting as the short-term downside filter is the previous monthly high and the 50-SMA, respectively near $21.20 and $20.65.

It’s worth noting that the commodity’s weakness past $20.65 won’t hesitate to challenge the $20.00 psychological magnet whereas the 200-SMA level near $19.70 could challenge the XAGUSD bears afterward.

On the flip side, the upper line of the stated channel, close to $22.20 could restrict short-term silver advances ahead of the highs marked in June, near $22.50.

If the XAGUSD bulls keep the reins past $22.50, the $23.00 round figure and May’s peak of $23.10 should gain the market’s attention.

Trend: Pullback expected

Technical Levels: Supports and Resistances

XAGUSD currently trading at 21.59 at the time of writing. Pair opened at 21.66 and is trading with a change of -0.32% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 19.79, 50 SMA 19.48, 100 SMA @ 19.47 and 200 SMA @ 21.47.

The previous day high was 22.06 while the previous day low was 21.28. The daily 38.2% Fib levels comes at 21.58, expected to provide support. Similarly, the daily 61.8% fib level is at 21.76, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 21.27, 20.88, 20.48
• Pivot resistance is noted at 22.06, 22.46, 22.85

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