#XAGUSD @ 20.941 Silver extends the overnight breakout momentum and climbs to the $21.00 neighbourhood. (Pivot Orderbook analysis)

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• Silver extends the overnight breakout momentum and climbs to the $21.00 neighbourhood.
• The set-up favours bulls and supports prospects for an extension of the appreciating move.
• Any meaningful corrective slide would be seen as a buying opportunity and remains limited.

The pair currently trades last at 20.941.

The previous day high was 20.72 while the previous day low was 19.01. The daily 38.2% Fib levels comes at 20.07, expected to provide support. Similarly, the daily 61.8% fib level is at 19.66, expected to provide support.

Silver builds on the previous day’s strong move up and gains traction for the third successive day on Tuesday. This also marks the fifth day of a positive move in the previous six and lifts the white metal to the $21.00 mark, or its highest level since late June during the early European session.

The overnight sustained breakout through a nearly four-month-old descending trend-line resistance and the $20.00 psychological mark, or the 100-day SMA was seen as a fresh trigger for bullish traders. Given that technical indicators on the daily chart are still far from being in the overbought zone, the set-up supports prospects for an extension of the appreciating move for the XAG/USD.

Some follow-through buying beyond the $21.00 round figure will reaffirm the positive outlook and allow bulls to challenge the very important 200-day SMA. The latter is currently pegged just ahead of the $22.00 mark, above which the XAG/USD could climb towards the next relevant resistance near the $22.40 region. The momentum could further get extended towards the $23.00 round-figure mark.

On the flip side, the $20.80-$20.75 zone now seems to protect the immediate downside. Any subsequent pullback is more likely to attract fresh buying and remain limited near the $20.00 mark, or the 100-day SMA. This is followed by the descending trend-line resistance breakout point, around the $19.55 region, which should now act as a strong base for the XAG/USD and a key pivotal point.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 20.98 at the time of writing. Pair opened at 20.7 and is trading with a change of 1.35 % .

The pair is trading above its 20 Daily moving average @ 19.12, above its 50 Daily moving average @ 19.35 , above its 100 Daily moving average @ 20.04 and below its 200 Daily moving average @ 21.95

The previous day high was 20.72 while the previous day low was 19.01. The daily 38.2% Fib levels comes at 20.07, expected to provide support. Similarly, the daily 61.8% fib level is at 19.66, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 19.57, 18.44, 17.86
• Pivot resistance is noted at 21.27, 21.85, 22.98

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