#XAGUSD @ 23.795 Silver price licks its wounds at the lowest levels in six weeks., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• Silver price licks its wounds at the lowest levels in six weeks.
• Daily closing below 50-DMA, bearish MACD signals keep XAG/USD sellers hopeful.
• 100-DMA, nearly oversold RSI (14) line can restrict Silver Price downside.

The pair currently trades last at 23.795.

The previous day high was 24.11 while the previous day low was 23.64. The daily 38.2% Fib levels comes at 23.82, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.93, expected to provide resistance.

Silver price (XAG/USD) remains mildly bid around $23.75-80 as it pares the biggest daily loss in a week at a 1.5-month low, marked the previous day, amid early Wednesday in Europe.

Despite the latest inaction, or say a short-covering move, the XAG/USD remains on the bear’s radar as it keeps Tuesday’s closing breakdown of the 50-DMA. Adding strength to the Silver Price downside bias are the bearish MACD signals.

With this, the XAG/USD is well-set to drop test the 100-DMA support of near $23.40 before poking the 50% Fibonacci retracement level of its March-May upside, close to the $23.00 round figure.

It’s worth noting, however, that the RSI (14) line is near to the oversold territory and hence suggests bottom-picking of the XAG/USD around the aforementioned supports.

Should the Silver price drop below $23.00, the 61.8% Fibonacci retracement level, also known as the golden Fibonacci ratio, can challenge the XAG/USD bears near $22.30.

On the contrary, recovery moves need validation from the 50-DMA hurdle surrounding $24.10.

Even if the Silver price manages to provide a daily closing beyond $24.10, a horizontal area comprising levels marked since late March, around $24.20, can act as an extra filter towards the north before welcoming the XAG/USD bulls.

Following that, multiple levels marked during the April-May period, around $24.50-55, can act as the last defense of the XAG/USD bears.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

XAGUSD currently trading at 23.77 at the time of writing. Pair opened at 23.76 and is trading with a change of 0.04% % .

The pair is trading below its 20 Daily moving average @ 25.05, below its 50 Daily moving average @ 23.98 , above its 100 Daily moving average @ 23.4 and above its 200 Daily moving average @ 21.89

The previous day high was 24.11 while the previous day low was 23.64. The daily 38.2% Fib levels comes at 23.82, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.93, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 23.56, 23.36, 23.09
• Pivot resistance is noted at 24.03, 24.3, 24.5

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