#XAGUSD @ 24.750 Silver dives to a nearly two-week low on Wednesday and tests the 23.6% Fibo. level support. (Pivot Orderbook analysis)

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• Silver dives to a nearly two-week low on Wednesday and tests the 23.6% Fibo. level support.
• Weakness below the 200-period SMA on the 4-hour charts will pave the way for further losses.
• A sustained move back above the $25.20-$5.25 region will negate any near-term negative bias.

The pair currently trades last at 24.750.

The previous day high was 25.32 while the previous day low was 24.93. The daily 38.2% Fib levels comes at 25.17, expected to provide resistance. Similarly, the daily 61.8% fib level is at 25.08, expected to provide resistance.

Silver comes under heavy selling following the previous day’s modest bounce and drops to a one-and-half-week low during the first half of the European session on Wednesday. The white metal currently trades around the $24.70 area and flirts with the 23.6% Fibonacci retracement level of the recent rally from the YTD low – levels just below the $20.00 psychological mark touched in March.

The Relative Strength Index (RSI) on the 1-hour chart, meanwhile, is already flashing oversold conditions and is on the verge of breaking below the 30 mark on the 4-hour chart. Hence, any subsequent slide is more likely to find some support near the 100-period Simple Moving Average (SMA) on the 4-hour chart, which if broken decisively will be seen as a fresh trigger for bearish traders.

This, in turn, will set the stage for an extension of the recent pullback from a one-year high, around the $26.10 area touched last week. The XAG/USD might then fall to the $24.40-$24.30 strong horizontal resistance breakpoint, now turned support, before eventually dropping below the $24.00 mark, towards testing the next relevant support near the 38.2% Fibo. level, around the $23.75 area.

On the flip side, the $25.00 psychological mark seems to act as an immediate hurdle ahead of the $25.20-$25.25 supply zone. A sustained strength beyond will suggest that the corrective decline has run its course and lift the XAG/USD further towards the $25.80-$25.85 resistance en route to the $26.00 mark. Some follow-through buying will mark a fresh bullish breakout and pave the way for further gains.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 24.7 at the time of writing. Pair opened at 25.2 and is trading with a change of -1.98 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 24.26, 50 SMA 22.57, 100 SMA @ 23.01 and 200 SMA @ 21.32.

The previous day high was 25.32 while the previous day low was 24.93. The daily 38.2% Fib levels comes at 25.17, expected to provide resistance. Similarly, the daily 61.8% fib level is at 25.08, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 24.98, 24.76, 24.59
• Pivot resistance is noted at 25.37, 25.54, 25.76

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