#XAGUSD @ 25.118 Silver drifts lower on the last day of the week, though lacks any follow-through selling. (Pivot Orderbook analysis)

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• Silver drifts lower on the last day of the week, though lacks any follow-through selling.
• The technical setup still favours bullish traders and supports prospects for further gains.
• A convincing break below the $24.40-30 area is needed to negate the positive outlook.

The pair currently trades last at 25.118.

The previous day high was 25.5 while the previous day low was 25.06. The daily 38.2% Fib levels comes at 25.33, expected to provide resistance. Similarly, the daily 61.8% fib level is at 25.23, expected to provide resistance.

Silver comes under some selling pressure on the last day of the week and extends its steady intraday descent through the first half of the European session. The white metal slips below the $25.00 psychological mark, though manage to hold its neck above the 100-period Simple Moving (SMA) on the 4-hour chart.

Technical indicators on the 4-hour chart have just started gaining negative traction, though are holding comfortably in the bullish territory on the daily chart. This, in turn, supports prospects for the emergence of some dip-buying at lower levels and suggests that the path of least resistance for the XAG/USD is to the upside. Hence, any subsequent slide is more likely to find decent support near the 23.6% Fibonacci retracement level of the March-April rally, around the $24.65 zone.

This is followed by the $24.40-$24.30 strong horizontal resistance breakpoint, now turned support, which if broken might negate the positive outlook and shift the near-term bias in favour of bearish traders. The XAG/USD might then turn vulnerable to weaken further below the $24.00 mark and test the 38.2% Fibo. level. Some follow-through selling should pave the way for an extension of the recent pullback from a one-year high, around the $26.10 region touched last week.

On the flip side, the $25.50-$25.60 region now seems to have emerged as an immediate strong resistance, above which the XAG/USD is likely to make a fresh attempt to conquer the $26.00 mark. Some follow-through buying will mark a fresh bullish breakout and set the stage for a further near-term appreciating move.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 25.12 at the time of writing. Pair opened at 25.29 and is trading with a change of -0.67 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 24.52, 50 SMA 22.69, 100 SMA @ 23.08 and 200 SMA @ 21.38.

The previous day high was 25.5 while the previous day low was 25.06. The daily 38.2% Fib levels comes at 25.33, expected to provide resistance. Similarly, the daily 61.8% fib level is at 25.23, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 25.07, 24.84, 24.63
• Pivot resistance is noted at 25.51, 25.72, 25.95

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