Silver has experienced a strong surge for a second consecutive day and has continued to climb back up from a low point that lasted several months. The current value of #XAGUSD is at 22.788.

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• Silver gains strong traction for the second straight day and recovers further from a multi-month low.

The pair currently trades last at 22.788.

The previous day high was 22.68 while the previous day low was 22.11. The daily 38.2% Fib levels comes at 22.47, expected to provide support. Similarly, the daily 61.8% fib level is at 22.33, expected to provide support.

Silver builds on Friday’s modest bounce from the $22.10 area, or its lowest level since March 17 and gains strong follow-through traction on the first day of a new week. The upward trajectory remains unabated through the early part of the European session and lifts the white metal to a three-day high, around the $22.85 region in the last hour.

From a technical perspective, the XAG/USD has now moved back above the 100-hour Simple Moving Average (SMA) and is currently placed around the 38.2% Fibonacci retracement level of the downfall witnessed over the past week or so. A sustained strength beyond might trigger a fresh bout of a short-covering rally and lift the commodity beyond the $23.00 mark, towards testing the 50% Fibo. level, around the $23.15 region.

The recovery could get extended to the $23.35-$23.40 confluence, comprising the 200-hour SMA and the 61.8% Fibo. level, which should now act as a pivotal point. Given that oscillators on the daily chart are still holding in the negative territory, bulls might wait for some follow-through buying beyond the said barrier before confirming that the XAG/USD has formed a bottom ahead of the $22.00 mark and positioning for any further gains.

On the flip side, weakness back below the 23.6% Fibo. level, around the $22.60 area, will expose the multi-month low, around the $22.10 region. Some follow-through selling below the $22.00 mark will be seen as a fresh trigger for bearish traders and make the XAG/USD accelerate the slide towards the $21.70-$21.65 support zone. The downward trajectory could get extended further towards the $21.25 support en route to the $21.00 round figure.

The next relevant support is pegged near the $20.50 area, below which the XAG/USD might eventually aim towards challenging the YTD low, levels just below the $20.00 psychological mark touched in March.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 22.79 at the time of writing. Pair opened at 22.44 and is trading with a change of 1.56 % .

The pair is trading below its 20 Daily moving average @ 23.54, below its 50 Daily moving average @ 24.19 , below its 100 Daily moving average @ 23.32 and above its 200 Daily moving average @ 22.49

The previous day high was 22.68 while the previous day low was 22.11. The daily 38.2% Fib levels comes at 22.47, expected to provide support. Similarly, the daily 61.8% fib level is at 22.33, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 22.14, 21.84, 21.57
• Pivot resistance is noted at 22.71, 22.98, 23.28

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