#XAGUSD @ 23.059 Silver prices retreats from seven-week high, portrays a bearish chart formation., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• Silver prices retreats from seven-week high, portrays a bearish chart formation.
• Overbought RSI, sluggish MACD signals add strength to downside bias.
• Key SMAs can test the XAG/USD sellers; bulls need validation from $23.60.

The pair currently trades last at 23.059.

The previous day high was 23.07 while the previous day low was 22.27. The daily 38.2% Fib levels comes at 22.77, expected to provide support. Similarly, the daily 61.8% fib level is at 22.58, expected to provide support.

Silver price (XAG/USD) drops to $23.00 as it snaps a two-day winning streak while reversing from the highest levels since early February on Friday. In doing so, the bright metal prints a one-week-old rising wedge bearish chart formation and lures the sellers due to the pattern’s positioning at the multi-day top.

Adding strength to the downside bias could be the sluggish MACD signals and the overbought conditions of the RSI (14) line.

As a result, the XAG/USD is likely to decline further toward the 61.8% Fibonacci retracement level of the metal’s fall during the February-March period, around $22.80.

However, the quote’s further declines hinge on its ability to break the stated wedge’s lower line, around $22.60 at the latest.

Following that, the 50-SMA and 200-SMA can entertain the XAG/USD sellers around $22.30 and $21.55 during the theoretical south-run towards the early March swing high surrounding $21.30.

Alternatively, recovery moves need to cross the $23.20 hurdle to defy the bearish chart formation.

Even so, multiple hurdles marked around $23.60 can prod the Silver buyers before directing them to the previous monthly high surrounding $24.65.

Overall, Silver price is likely to witness a pullback but the road towards the south appears limited.

Trend: Further downside expected

Technical Levels: Supports and Resistances

XAGUSD currently trading at 23.05 at the time of writing. Pair opened at 22.97 and is trading with a change of 0.35% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 21.3, 50 SMA 22.28, 100 SMA @ 22.42 and 200 SMA @ 20.96.

The previous day high was 23.07 while the previous day low was 22.27. The daily 38.2% Fib levels comes at 22.77, expected to provide support. Similarly, the daily 61.8% fib level is at 22.58, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 22.47, 21.97, 21.67
• Pivot resistance is noted at 23.27, 23.57, 24.07

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