The price of silver (XAGUSD) declines slightly on Monday and continues to correct itself after reaching its highest point in over three months.

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• Silver edges lower on Monday and corrects further from over a three-month high.

The pair currently trades last at 24.148.

The previous day high was 24.38 while the previous day low was 23.92. The daily 38.2% Fib levels comes at 24.21, expected to provide resistance. Similarly, the daily 61.8% fib level is at 24.1, expected to provide support.

Silver attracts some intraday selling on the first day of a new week and moves away from over a three-week high, around the $24.35-$24.40 region touched on Friday. The white metal sticks to a mildly negative tone through the early part of the European session, albeit manages to hold its neck above the $24.00 round-figure mark.

Any subsequent slide below the aforementioned handle is more likely to find some support near the $23.85-$23.80 area, or the 200-period Simple Moving Average (SMA) on the 4-hour chart. Against the backdrop of positive technical indicators on 4-hour/daily charts, the said area could act as a pivotal point for intraday traders and help limit any further decline.

A sustained break below, however, might prompt some technical selling and drag the XAG/USD towards the $23.55 region. This is closely followed by support near the $23.40 area, representing the 200-day SMA, which if broken decisively might shift the near-term bias in favour of bearish traders and pave the way for some meaningful downside.

On the flip side, the $24.35-$24.40 area might continue to act as an immediate strong resistance, which if cleared should allow the XAG/USD to surpass the $24.55-$24.60 intermediate hurdle and aim to reclaim the $25.00 psychological mark. The positive move could get extended further towards the $25.25 zone, or the July monthly swing high, en route to the $26.00 mark.

Zooming out to the daily chart, the recent price action witnessed since early June seems to constitute the formation of a bearish head and shoulders pattern on the daily chart. The pattern, however, will be confirmed on a sustained break below the neckline support, around the $22.20-$22.10 region.

Key levels to watch

Technical Levels: Supports and Resistances

XAGUSD currently trading at 24.15 at the time of writing. Pair opened at 24.24 and is trading with a change of -0.37 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 23.32, 50 SMA 23.53, 100 SMA @ 23.98 and 200 SMA @ 23.35.

The previous day high was 24.38 while the previous day low was 23.92. The daily 38.2% Fib levels comes at 24.21, expected to provide resistance. Similarly, the daily 61.8% fib level is at 24.1, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 23.98, 23.72, 23.51
• Pivot resistance is noted at 24.45, 24.65, 24.91

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