#XAGUSD @ 19.252 Silver gains traction for the fourth straight day and climbs to over a two-week high. (Pivot Orderbook analysis)

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• Silver gains traction for the fourth straight day and climbs to over a two-week high.
• The technical set-up favours bullish traders and supports prospects for further gains.
• A sustained break below the $18.60 region is needed to negate the positive outlook.

The pair currently trades last at 19.252.

The previous day high was 18.95 while the previous day low was 18.53. The daily 38.2% Fib levels comes at 18.79, expected to provide support. Similarly, the daily 61.8% fib level is at 18.69, expected to provide support.

Silver prolongs its recent recovery move from the lowest level since June 2020 touched earlier this month and gains traction for the fourth successive day on Monday. This also marks the sixth day of a positive move in the previous seven and lifts the white metal to over a two-week high, around the $19.30 area during the first half of the European session.

Last week’s sustained breakout through the top end of a nearly one-month-old descending channel and a subsequent strength beyond the 100-period SMA on the 4-hour chart was seen as a key trigger for bulls. Furthermore, technical indicators on the daily chart have just started moving in the positive territory and remain supportive of the strong follow-through move up.

That said, RSI (14) on hourly charts is already flashing overbought conditions and might hold back traders from placing fresh bullish bets around the XAG/USD. Hence, it is prudent to wait for some near-term consolidation or a modest pullback before positioning for any further appreciating move. The bias, meanwhile, still seems tilted firmly in favour of bullish traders.

A convincing breakthrough the $19.35-$19.40 hurdle will reaffirm the constructive outlook and allow the XAG/USD to accelerate the momentum towards reclaiming the $20.00 psychological mark. The next relevant resistance is pegged near the $20.25 horizontal zone, which if cleared should pave the way for additional gains.

On the flip side, the $19.00 round figure now seems to protect the immediate downside. Any further pullback might be seen as a buying opportunity and remain limited near the 100-period SMA on the 4-hour chart, around the $18.65-$18.60 region. This is followed by support near the $18.30 area. A convincing break below the latter will negate the near-term positive bias.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 19.21 at the time of writing. Pair opened at 18.83 and is trading with a change of 2.02 % .

The pair is trading above its 20 Daily moving average @ 18.86, below its 50 Daily moving average @ 19.24 , below its 100 Daily moving average @ 20.53 and below its 200 Daily moving average @ 22.2

The previous day high was 18.95 while the previous day low was 18.53. The daily 38.2% Fib levels comes at 18.79, expected to provide support. Similarly, the daily 61.8% fib level is at 18.69, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 18.59, 18.35, 18.17
• Pivot resistance is noted at 19.01, 19.19, 19.43

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