#XAGUSD @ 22.402 Silver registers a modest recovery from a nearly one-month low and snaps a two-day losing streak. (Pivot Orderbook analysis)

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• Silver registers a modest recovery from a nearly one-month low and snaps a two-day losing streak.
• Oversold RSI (14) on hourly charts helps the XAG/USD to find support near the 23.6% Fibo. level.
• The technical setup, however, favours bearish traders and supports prospects for additional losses.

The pair currently trades last at 22.402.

The previous day high was 23.61 while the previous day low was 22.29. The daily 38.2% Fib levels comes at 22.79, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.1, expected to provide resistance.

Silver stages a modest intraday recovery from a nearly one-month low, around the $22.20-$22.15 region touched earlier this Monday and reverses a part of Friday’s heavy losses. The white metal, for now, seems to have snapped a two-day losing streak, though the near-term technical setup seems tilted firmly in favour of bearish traders.

The steep decline witnessed over the past two trading sessions confirmed a near-term breakdown through the $23.00-$22.90 strong horizontal support. The said area marked the lower end of a nearly two-month-old trading range and coincided with the 23.6% Fibonacci retracement level of the recent rally from October 2022. Furthermore, acceptance below the 50-day SMA adds credence to the negative outlook for the XAG/USD.

That said, the oversold RSI (14) on hourly charts assists the XAG/USD to find support near the 38.2% Fibo. level and stall its sharp pullback from the highest level since April 2022 touched last week. Hence, it will be prudent to wait for some follow-through selling below the $22.20-$22.15 area before positioning for a fall below the $22.00 mark, towards the next relevant support near the 100-day SMA, around the $21.60-$21.55 zone.

On the flip side, the aforementioned confluence support breakpoint near the $23.00-$22.90 region now seems to act as an immediate strong barrier. Any subsequent move up might now be seen as a selling opportunity and runs the risk of fizzling out near the 50-day SMA, currently around the $23.30-$23.35 region. That said, a sustained strength beyond will negate the bearish bias and prompt some short-covering around the XAG/USD.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 22.43 at the time of writing. Pair opened at 22.35 and is trading with a change of 0.36 % .

The pair is trading below its 20 Daily moving average @ 23.69, below its 50 Daily moving average @ 23.42 , above its 100 Daily moving average @ 21.69 and above its 200 Daily moving average @ 21.02

The previous day high was 23.61 while the previous day low was 22.29. The daily 38.2% Fib levels comes at 22.79, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.1, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 21.89, 21.43, 20.58
• Pivot resistance is noted at 23.21, 24.06, 24.52

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