#XAGUSD @ 21.620 Silver reverses an intraday dip to the $21.30 area, though lacks follow-through buying. (Pivot Orderbook analysis)

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• Silver reverses an intraday dip to the $21.30 area, though lacks follow-through buying.
• Repeated failures to capitalize on the move beyond 200 DMA warrants caution for bulls.
• A convincing break below the $21.00 mark will shift the bias in favour of bearish traders.

The pair currently trades last at 21.620.

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 attracts some dip-buying near the $21.30 region on Monday and hits a fresh daily peak during the first half of the European session. The white metal is currently placed around the $21.65-$21.70 area, though remains below a five-month high touched on Friday.

Looking at the broader picture, the XAGUSD, so far, has been struggling to capitalize on its positive move beyond the very important 200-day SMA. This makes it prudent to wait for some follow-through buying before positioning for any further near-term appreciating move.

From current levels, the multi-month high, around the $22.05 region, could act as an immediate hurdle. The next relevant resistance is pegged near the $22.45-$22.50 supply zone, which if cleared will be seen as a fresh trigger for bulls and pave the way for additional gains.

The XAGUSD might then accelerate the momentum towards the $23.00 mark and eventually climb to the May swing high, around the $23.25-$23.30 area. Given that RSI on the daily chart is on the verge of breaking into the overbought zone, the latter should act as a tough nut to crack for bulls.

On the flip side, the daily low, around the $21.35 region, now seems to protect the immediate downside. Any further pullback could be seen as a buying opportunity and remain limited near the $21.00 mark, which should now act as a pivotal point for short-term traders.

A convincing break below could trigger some technical selling and drag the XAGUSD to the $20.40 support zone. Failure to defend the said support levels might negate the near-term positive outlook and shift the bias in favour of bearish traders.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 21.68 at the time of writing. Pair opened at 21.66 and is trading with a change of 0.09 % .

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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