#XAGUSD @ 24.077 Silver scales higher for the third successive day and touches a fresh weekly high on Thursday. (Pivot Orderbook analysis)

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• Silver scales higher for the third successive day and touches a fresh weekly high on Thursday.
• The formation of a rectangle on the daily chart warrants caution before placing directional bets.
• The technical setup, however, favours bulls and supports prospects for an eventual breakout.

The pair currently trades last at 24.077.

The previous day high was 24.04 while the previous day low was 23.37. The daily 38.2% Fib levels comes at 23.78, expected to provide support. Similarly, the daily 61.8% fib level is at 23.62, expected to provide support.

Silver builds on this week’s move up from sub-$23.00 levels and gains some follow-through traction for the third successive day on Thursday. The white metal steadily climbs to $24.30 horizontal resistance during the early European session and moves well within the striking distance of the multi-month top touched in January.

Looking at the broader picture, the XAG/USD has been oscillating in a familiar trading range over the past one-and-half month or so. The price action, meanwhile, constitutes the formation of a rectangle on the daily chart and points to indecision among traders. This, in turn, warrants caution for aggressive traders and before positioning for a firm near-term direction.

That said, positive technical indicators on the daily chart favour bulls and support prospects for an eventual breakout to the upside. A sustained strength beyond the trading range resistance, around the $24.50-$24.55 region, will reaffirm the constructive outlook. The XAG/USD might then aim to reclaim the $25.00 psychological mark for the first time since April 2022.

Some follow-through buying has the potential to lift the XAG/USD towards the next relevant hurdle near the $25.35 region en route to the $26.00 round figure.

On the flip side, the $24.00 mark now seems to protect the immediate downside. Any subsequent pullback might continue to attract some buyers near the $23.50-$23.45 region, below which the XAG/USD could slide to the $23.00 level. This is followed by support near the $22.75 region, which if broken decisively will expose the next relevant support near the $22.20-$22.15 zone.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 24.12 at the time of writing. Pair opened at 24.0 and is trading with a change of 0.5 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 23.75, 50 SMA 23.37, 100 SMA @ 21.62 and 200 SMA @ 21.02.

The previous day high was 24.04 while the previous day low was 23.37. The daily 38.2% Fib levels comes at 23.78, expected to provide support. Similarly, the daily 61.8% fib level is at 23.62, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 23.57, 23.13, 22.89
• Pivot resistance is noted at 24.24, 24.48, 24.91

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