#XAGUSD @ 25.276 Silver remains on the defensive below the mid-$25.00s, though the downside seems limited. (Pivot Orderbook analysis)

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• Silver remains on the defensive below the mid-$25.00s, though the downside seems limited.
• The technical setup favours bullish traders and supports prospects for further near-term gains.
• A convincing break below the $25.50-40 strong support is needed to negate the positive bias.

The pair currently trades last at 25.276.

The previous day high was 25.49 while the previous day low was 24.58. The daily 38.2% Fib levels comes at 25.14, expected to provide support. Similarly, the daily 61.8% fib level is at 24.93, expected to provide support.

Silver struggles to capitalize on the previous day’s solid bounce from the vicinity of the $24.50-$24.40 strong horizontal support and edges lower during the first half of trading on Wednesday. The white metal sticks to a mildly negative tone and remains below mid-$25.00s through the early European session, though the downside potential seems limited.

From a technical perspective, the XAG/USD has been showing some resilience near the 23.6% Fibonacci retracement level of the March-April rally and the subsequent rally favours bullish traders. Moreover, positive oscillators on the daily chart, which are still far from being in the overbought zone, support prospects for a further near-term appreciating move.

Some follow-through buying beyond the $25.50-$25.60 supply zone will reaffirm the positive outlook and allow the XAG/USD to make a fresh attempt to conquer the $26.00 round-figure mark. This is closely followed by a one-year high touched in April, above which the white metal could climb to the $26.25-$26.30 region en route to the $27.00 round-figure mark.

On the flip side, the $25.00 psychological mark now seems to protect the immediate downside. Any further fall might still be seen as a buying opportunity and remain limited near the $24.50-$24.40 region. The latter should act as a key pivotal point, which if broken will negate any positive outlook and shift the near-term bias in favour of bearish traders.

The XAG/USD might then weaken further below the $24.00 mark and accelerate the slide towards testing the 38.2% Fibo. level, around the $23.70 area. The corrective decline could get extended further to the next relevant support near the $23.35-$23.30 area before the white metal eventually drops to the $23.00 round-figure mark, representing the 50% Fibo. level.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 25.28 at the time of writing. Pair opened at 25.38 and is trading with a change of -0.39 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 25.15, 50 SMA 23.21, 100 SMA @ 23.26 and 200 SMA @ 21.63.

The previous day high was 25.49 while the previous day low was 24.58. The daily 38.2% Fib levels comes at 25.14, expected to provide support. Similarly, the daily 61.8% fib level is at 24.93, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 24.81, 24.24, 23.9
• Pivot resistance is noted at 25.72, 26.06, 26.62

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