#XAGUSD @ 23.068 Silver surrenders its intraday gains to the highest level since late April touched earlier this Monday. (Pivot Orderbook analysis)

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• Silver surrenders its intraday gains to the highest level since late April touched earlier this Monday.
• The technical setup still favours bullish traders and supports prospects for further appreciating move.
• A convincing breakdown below the 200-day SMA is needed to negate the near-term positive outlook.

The pair currently trades last at 23.068.

The previous day high was 23.24 while the previous day low was 22.28. The daily 38.2% Fib levels comes at 22.87, expected to provide support. Similarly, the daily 61.8% fib level is at 22.64, expected to provide support.

Silver retreats from the mid-$23.00s or the highest level since late April touched earlier this Monday and drops to the lower end of its daily range during the early European session. The XAG/USD is currently trading just above the $23.00 round-figure mark, up around 0.10% for the day.

Slightly overbought RSI (14) on the daily chart turns out to be the only factor prompting some profit-taking around the XAG/USD. The near-term bias, however, remains tilted in favour of bullish traders in the wake of last week’s sustained breakout through a technically significant 200-day SMA and the $22.00 mark. Hence, any subsequent pullback might still be seen as a buying opportunity and is more likely to remain limited, at least for the time being.

From current levels, any further slide below the $23.00 mark is likely to find decent support near the $22.60-$22.55 horizontal resistance breakpoint. The next relevant support is pegged near the $22.00 mark, below which the XAG/USD could slide further to the $21.40 area. The latter marks the 200 DMA and should act as a strong base. A convincing break below will negate the near-term positive outlook and pave the way for a deeper corrective pullback.

On the flip side, the multi-month peak, around the $23.50-$23.55 region, could act as an immediate resistance. Some follow-through buying should allow the XAG/USD to aim back to reclaim the $24.00 mark for the first time since April. The positive momentum could get extended towards the $24.25-$24.30 zone en route to the $24.55-$24.60 region.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 23.16 at the time of writing. Pair opened at 23.14 and is trading with a change of 0.09 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 21.51, 50 SMA 20.22, 100 SMA @ 19.76 and 200 SMA @ 21.32.

The previous day high was 23.24 while the previous day low was 22.28. The daily 38.2% Fib levels comes at 22.87, expected to provide support. Similarly, the daily 61.8% fib level is at 22.64, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 22.53, 21.93, 21.57
• Pivot resistance is noted at 23.49, 23.84, 24.45

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