#XAGUSD @ 24.987 Silver regains positive traction on Monday and climbs back closer to the YTD peak. (Pivot Orderbook analysis)

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• Silver regains positive traction on Monday and climbs back closer to the YTD peak.
• The technical setup favours bullish traders and supports prospects for further gains.
• Overbought RSI on the daily chart warrants caution before placing aggressive bets.

The pair currently trades last at 24.987.

The previous day high was 25.0 while the previous day low was 24.56. The daily 38.2% Fib levels comes at 24.84, expected to provide support. Similarly, the daily 61.8% fib level is at 24.73, expected to provide support.

Silver attracts some dip-buying on the first day of a new week and steadily climbs back closer to the $25.00 psychological mark during the first half of the European session. The white metal is currently placed just below a nearly one-year high touched on Friday and seems poised to prolong its recent upward trajectory witnessed over the past month or so.

Last week’s sustained breakout through the $24.30-$24.40 strong horizontal barrier was seen as a fresh trigger for bullish traders. Furthermore, the emergence of fresh buying ahead of the said resistance breakpoint now turned support, adds credence to the positive outlook. That said, Relative Strength Index (RSI) on the daily chart is flashing overbought conditions and warrants some caution before positioning for any further appreciating move.

Hence, it will be prudent to wait for some near-term consolidation or a modest pullback before positioning for a fresh leg up. Nevertheless, the XAG/USD seems poised to surpass the $25.10-$25.15 area and climb further towards the $25.35-$25.40 region. The momentum could get extended towards the $26.00 mark en route to the next relevant hurdle near the $26.20 area, the $26.40-$26.50 zone and the 2022 high, just ahead of the $27.00 mark.

On the flip side, any meaningful pullback is likely to attract fresh buyers and remain limited near the $24.40-$24.30 resistance-turned-support. The said area should now act as a pivotal point, which if broken decisively might prompt some technical selling. The XAG/USD might then turn vulnerable to weaken below the $24.00 mark and test the $23.60-$23.55 support area before eventually dropping to the $23.15 zone en route to the $23.00 round figure.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 24.95 at the time of writing. Pair opened at 24.97 and is trading with a change of -0.08 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 23.05, 50 SMA 22.29, 100 SMA @ 22.72 and 200 SMA @ 21.11.

The previous day high was 25.0 while the previous day low was 24.56. The daily 38.2% Fib levels comes at 24.84, expected to provide support. Similarly, the daily 61.8% fib level is at 24.73, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 24.69, 24.41, 24.25
• Pivot resistance is noted at 25.13, 25.29, 25.57

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