#XAGUSD @ 20.121 Silver bounces off a fresh four-month low touched earlier this Friday, though lacks follow-through. (Pivot Orderbook analysis)

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• Silver bounces off a fresh four-month low touched earlier this Friday, though lacks follow-through.
• A slightly oversold RSI on the daily charts supports prospects for some near-term recovery move.
• Bearish traders need to wait for an acceptance below the $20.00 mark before placing fresh bets.

The pair currently trades last at 20.121.

The previous day high was 20.3 while the previous day low was 19.98. The daily 38.2% Fib levels comes at 20.17, expected to provide resistance. Similarly, the daily 61.8% fib level is at 20.1, expected to provide support.

Silver continues to show some resilience below the $20.00 psychological mark and reverses an intraday dip to a fresh four-month low touched earlier this Friday. The uptick, however, lacks bullish conviction, suggesting that the recent downfall witnessed over the past month or so might still be far from being over and positioning for any meaningful appreciating move.

Meanwhile, technical indicators on the daily chart languish in the oversold territory and support prospects for some upside in the near term. That said, the attempted recovery is more likely to confront stiff resistance near the $20.50-$20.40 horizontal support breakpoint, which coincided with the previous YTD low. Some follow-through buying, however, could trigger a short-covering move and lift the XAG/USD towards the 200-day Simple Moving Average (SMA), currently pegged just ahead of the $21.00 mark.

The latter should act as a pivotal point, which if cleared decisively will suggest that the recent pullback from the $24.65 region, or a multi-month peak touched in February has run its course and pave the way for additional gains. The XAG/USD might then accelerate the move towards the next relevant hurdle near the mid-$21.00s before aiming to reclaim the $22.00 round-figure mark.

On the flip side, bearish traders need to wait for an acceptance below the $20.00 mark before placing fresh bets. The subsequent slide could drag the XAG/USD towards the $19.60 intermediate support en route to the $19.00 round-figure mark. Some follow-through selling should pave the way for a slide towards the $18.80-$18.75 zone before the white metal drops to the $18.30-$18.25 zone and the $18.00 level.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 20.13 at the time of writing. Pair opened at 20.06 and is trading with a change of 0.35 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 21.2, 50 SMA 22.58, 100 SMA @ 22.18 and 200 SMA @ 20.95.

The previous day high was 20.3 while the previous day low was 19.98. The daily 38.2% Fib levels comes at 20.17, expected to provide resistance. Similarly, the daily 61.8% fib level is at 20.1, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 19.93, 19.8, 19.61
• Pivot resistance is noted at 20.24, 20.43, 20.56

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