#XAGUSD @ 22.302 Silver pares intraday gains after reversing from seven-month high., @nehcap view: Limited upside expected (Pivot Orderbook analysis)

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• Silver pares intraday gains after reversing from seven-month high.
• 50-HMA breakdown keeps sellers hopeful but sluggish MACD immediate support line restricts downside moves.
• 200-HMA, nearly descending trend line act as additional trading filters.

The pair currently trades last at 22.302.

The previous day high was 23.52 while the previous day low was 22.17. The daily 38.2% Fib levels comes at 22.68, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.0, expected to provide resistance.

Silver price (XAG/USD) retreats to $22.35 heading into Tuesday’s European session. Even so, the bright metal remains mildly bid while consolidating the biggest daily loss in 10 weeks, marked the previous day.

It should be noted that the bullish MACD signals challenge the quote’s downside momentum.

That said, the bullion’s latest losses could be linked to the failure to cross a one-week-old horizontal resistance area surrounding $22.40-45.

However, an upward-sloping trend line from November 29, near $22.25, restricts the immediate downside of the XAG/USD price.

Should the metal breaks immediate support, the 200-HMA level surrounding $21.90, could act as the last defense of the Silver bulls.

On the contrary, an upside break of $22.45 isn’t an open welcome to the XAG/USD buyers as a downward-sloping trend line from Monday restricts immediate upside near $22.55. Also acting as an upside hurdle is the 50-HMA level near $22.75.

To sum up, the Silver price remains sidelined between the 50-HMA and the 200-HMA but the odds favoring upside are higher.

Trend: Limited upside expected

Technical Levels: Supports and Resistances

XAGUSD currently trading at 22.35 at the time of writing. Pair opened at 22.21 and is trading with a change of 0.63% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 21.58, 50 SMA 20.3, 100 SMA @ 19.8 and 200 SMA @ 21.31.

The previous day high was 23.52 while the previous day low was 22.17. The daily 38.2% Fib levels comes at 22.68, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.0, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 21.75, 21.28, 20.39
• Pivot resistance is noted at 23.1, 23.98, 24.45

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