#XAGUSD @ 25.436 Silver regains positive traction and reverses a part of Friday’s retracement slide from the YTD peak. (Pivot Orderbook analysis)

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• Silver regains positive traction and reverses a part of Friday’s retracement slide from the YTD peak.
• The technical setup still favours bullish traders and supports prospects for further near-term gains.
• A convincing break below the $25.00 mark should pave the way for a meaningful corrective decline.

The pair currently trades last at 25.436.

The previous day high was 26.09 while the previous day low was 25.16. The daily 38.2% Fib levels comes at 25.51, expected to provide resistance. Similarly, the daily 61.8% fib level is at 25.73, expected to provide resistance.

Silver attracts fresh buying on the first day of a new week and reverses a part of Friday’s retracement slide from levels just above the $26.00 mark, or a fresh one-year high. The white metal sticks to its modest intraday gains around the $25.45 region heading into the North American session and seem poised to prolong its recent appreciating move witnessed over the past month or so.

The recent breakout through the $24.30-$24.40 strong horizontal barrier and a subsequent move beyond the $25.00 psychological mark add credence to the near-term positive outlook for the XAG/USD. That said, the slightly overbought Relative Strength Index (RSI) on the daily chart might hold back traders from placing aggressive bets and keep a lid on any meaningful upside, at least for the time being.

In the meantime, any intraday slide might continue to attract fresh buyers and remain limited near the $25.00 mark. The latter should act as a pivotal point, which if broken decisively might prompt some technical selling and drag the XAG/USD towards the $24.30-$24.40 resistance-turned-support en route to the $24.00 mark. A convincing break below the latter might shift the bias in favour of bearish traders.

On the flip side, bulls might now wait for some follow-through buying beyond the YTD peak, around the $26.10 area touched on Friday, before placing fresh bets and positioning for a further appreciating move. The XAG/USD might then climb 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 round-figure mark.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 25.44 at the time of writing. Pair opened at 25.37 and is trading with a change of 0.28 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 24.01, 50 SMA 22.45, 100 SMA @ 22.93 and 200 SMA @ 21.26.

The previous day high was 26.09 while the previous day low was 25.16. The daily 38.2% Fib levels comes at 25.51, expected to provide resistance. Similarly, the daily 61.8% fib level is at 25.73, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 24.99, 24.61, 24.06
• Pivot resistance is noted at 25.92, 26.47, 26.85

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