#XAGUSD @ 25.821 Silver pulls back from a fresh one-year high touched earlier this Friday amid overbought RSI. (Pivot Orderbook analysis)

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• Silver pulls back from a fresh one-year high touched earlier this Friday amid overbought RSI.
• The technical setup still favours bulls and supports prospects for a further appreciating move.
• Any meaningful corrective slide might still be seen as a buying opportunity and remain limited.

The pair currently trades last at 25.821.

The previous day high was 25.98 while the previous day low was 25.39. The daily 38.2% Fib levels comes at 25.75, expected to provide support. Similarly, the daily 61.8% fib level is at 25.61, expected to provide support.

Silver touches a fresh one-year high on the last day of the week, albeit struggles to capitalize on the move and faces rejection near the $26.00 round-figure mark. The white metal surrenders its modest gains and trades near the lower end of its daily range, around the $25.85-$25.80 region during the early part of the European session.

Against the backdrop of a strong rally witnessed over the past month or so, the slightly overbought Relative Strength Index (RSI) on the daily chart turns out to be a key factor holding back traders from placing fresh bets around the XAG/USD. That said, the recent breakout through the $24.30-$24.40 strong horizontal barrier and a subsequent move beyond the $25.00 psychological mark support prospects for additional gains.

Hence, any subsequent pullback is more likely to attract fresh buyers near the $25.40-$25.35 area, or the overnight swing low. This should help limit the downside for the XAG/USD near the $25.00 mark. That said, a convincing break below the latter might prompt some technical selling and accelerate the corrective slide towards the $24.30-$24.40 resistance-turned-support. The latter should act as a strong near-term base for the metal.

On the flip side, bulls might now wait for some follow-through buying beyond the daily swing high, around the $26.00 mark, before placing fresh bets and positioning for a further appreciating move. The XAG/USD might then climb further towards the next relevant hurdle near the $26.40-$26.50 zone before eventually aiming to test the 2022 peak, just ahead of the $27.00 mark.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 25.8 at the time of writing. Pair opened at 25.82 and is trading with a change of -0.08 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 23.82, 50 SMA 22.41, 100 SMA @ 22.89 and 200 SMA @ 21.23.

The previous day high was 25.98 while the previous day low was 25.39. The daily 38.2% Fib levels comes at 25.75, expected to provide support. Similarly, the daily 61.8% fib level is at 25.61, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 25.49, 25.15, 24.9
• Pivot resistance is noted at 26.07, 26.31, 26.65

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