#XAGUSD @ 23.816 Silver price struggles to extend the previous day’s run-up., @nehcap view: Pullback expected (Pivot Orderbook analysis)

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• Silver price struggles to extend the previous day’s run-up.
• Convergence of 50-HMA, two-day-old support line restricts immediate downside.
• Sluggish oscillators and failure to cross weekly resistance lure XAG/USD bears.

The pair currently trades last at 23.816.

The previous day high was 24.18 while the previous day low was 23.38. The daily 38.2% Fib levels comes at 23.88, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.69, expected to provide support.

Silver price (XAG/USD) stays defensive around $23.80, after rising the most in a week, as buyers fail to defend the first daily gains in a week below the short-term key resistance line.

In addition to the failure to cross the downward-sloping resistance line from January 03, sluggish MACD signals and steady RSI (14) also back the latest pullback in the bright metal price.

However, the 50-Hour Moving Average (HMA) joins an upward-sloping support line from Wednesday to highlight the $23.70 as the short-term key support that can restrict the metal’s further declines.

Following that, the monthly low of around $23.10 and the $23.00 round figure could probe the Silver sellers.

It’s worth noting that the XAG/USD weakness past $23.00 won’t hesitate to challenge the mid-December low of $22.55 before highlighting the last defense of the buyers, namely the November 2022 peak of $22.25.

On the contrary, a one-week-old descending trend line, around $23.90 by the press time, precedes the $24.00 round figure to restrict short-term XAG/USD upside.

In a case where the Silver price remains firmer beyond $24.00, the monthly high and tops marked during January 2022, respectively near $24.55 and $24.70, will be crucial to watch as they hold the key to the metal’s rally towards April 2022 high near $26.25.

Trend: Pullback expected

Technical Levels: Supports and Resistances

XAGUSD currently trading at 23.82 at the time of writing. Pair opened at 23.78 and is trading with a change of 0.17% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 23.7, 50 SMA 22.65, 100 SMA @ 20.89 and 200 SMA @ 21.08.

The previous day high was 24.18 while the previous day low was 23.38. The daily 38.2% Fib levels comes at 23.88, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.69, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 23.38, 22.99, 22.59
• Pivot resistance is noted at 24.18, 24.58, 24.98

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