#XAGUSD @ 19.502 Silver regains positive traction on Wednesday and recovers a part of the overnight decline. (Pivot Orderbook analysis)

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• Silver regains positive traction on Wednesday and recovers a part of the overnight decline.
• The emergence of dip-buying favours bullish traders and supports prospects for further gains.
• A convincing break through a multi-month descending trend-line will reaffirm the positive bias.

The pair currently trades last at 19.502.

The previous day high was 19.95 while the previous day low was 19.33. The daily 38.2% Fib levels comes at 19.57, expected to provide resistance. Similarly, the daily 61.8% fib level is at 19.71, expected to provide resistance.

Silver attracts some buying near the $19.25 region, or the 50-day SMA support on Wednesday and reverses a part of the overnight retracement slide from a nearly four-week high. The white metal maintains its bid tone through the first half of the European session and is currently placed just above the mid-$19.00s.

From a technical perspective, the recent recovery from the $17.55 area, or over a two-year low, stalled on Tuesday near a descending trend-line resistance. The said barrier, currently pegged near the $20.00 psychological mark, extends from May monthly swing high and should act as a pivotal point. A convincing breakthrough will be seen as a fresh trigger for bulls and set the stage for additional gains.

Given that technical indicators on the daily chart have just started moving in the bullish territory, the XAG/USD might then climb to test the 100-day SMA, near the $20.45 region. Some follow-through buying should allow spot prices to aim back to reclaiming the $21.00 round-figure mark. The momentum could get further get extended towards the next relevant hurdle, around the $21.50 area.

On the flip side, the 19.25 region (50 DMA) seems to have emerged as an immediate strong support. This is closely followed by the $19.00 mark, which if broken might trigger some technical selling around the XAG/USD. The subsequent downfall, however, could still be seen as a buying opportunity and remain limited near the $18.45-$18.40 support zone, which should act as a strong base for the metal.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 19.52 at the time of writing. Pair opened at 19.33 and is trading with a change of 0.98 % .

The pair is trading above its 20 Daily moving average @ 18.8, above its 50 Daily moving average @ 19.24 , below its 100 Daily moving average @ 20.45 and below its 200 Daily moving average @ 22.17

The previous day high was 19.95 while the previous day low was 19.33. The daily 38.2% Fib levels comes at 19.57, expected to provide resistance. Similarly, the daily 61.8% fib level is at 19.71, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 19.13, 18.92, 18.51
• Pivot resistance is noted at 19.74, 20.15, 20.36

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