#XAGUSD @ 21.901 Silver corrects from a fresh five-month high touched earlier this Tuesday. (Pivot Orderbook analysis)

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• Silver corrects from a fresh five-month high touched earlier this Tuesday.
• Acceptance above the 200-day SMA supports prospects for further gains.
• A break below the $21.00 mark is needed to negate the positive outlook.

The pair currently trades last at 21.901.

The previous day high was 22.09 while the previous day low was 21.3. The daily 38.2% Fib levels comes at 21.79, expected to provide support. Similarly, the daily 61.8% fib level is at 21.6, expected to provide support.

Silver retreats from the $22.25 area, or its highest level since July 7 touched earlier this Tuesday and drops to a fresh daily low during the mid-European session. The white metal is currently trading just below the $22.00 round-figure mark, down over 0.50% for the day.

Given that RSI (14) remains close to overbought territory, bulls seem inclined to take some profits off the table following the recent rally of around 18% from the monthly low touched on November 3. That said, acceptance above a technically significant 200-day SMA for the first time since April supports prospects for a further near-term appreciating move.

Hence, any subsequent fall is more likely to find decent support and attract fresh buyers around the $21.45 region (200 DMA). This should limit the downside for the XAGUSD near the $21.20-$21.15 area. This is closely followed by the $21.00 mark, which if broken decisively will negate the positive outlook and shift the bias in favour of bearish traders.

The XAGUSD might then turn vulnerable to weaken below the $21.00 mark – a strong horizontal resistance breakpoint now turned support – and test the next relevant support near the $20.40-$20.35 region. The corrective slide could further get extended towards the $20.00 psychological mark en route to the $19.65-$19.60 zone and the $19.10-$19.00 support zone.

On the flip side, momentum back above the $22.00 mark now seems to confront resistance near the daily swing high, around the $22.25 region. A sustained strength beyond will reaffirm the constructive outlook and lift the XAGUSD towards the $22.50-$22.60 supply zone. Bulls might eventually aim to reclaim the $23.00 round figure and test the $23.25-$23.30 hurdle.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 21.86 at the time of writing. Pair opened at 21.98 and is trading with a change of -0.55 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 19.96, 50 SMA 19.56, 100 SMA @ 19.48 and 200 SMA @ 21.47.

The previous day high was 22.09 while the previous day low was 21.3. The daily 38.2% Fib levels comes at 21.79, expected to provide support. Similarly, the daily 61.8% fib level is at 21.6, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 21.49, 21.0, 20.7
• Pivot resistance is noted at 22.28, 22.58, 23.07

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