#XAGUSD @ 24.111 Silver retreats further from a nearly one-month high touched on Friday. (Pivot Orderbook analysis)

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• Silver retreats further from a nearly one-month high touched on Friday.
• The technical setup supports prospects for the emergence of dip-buying.
• A break below the $23.60-55 confluence will negate the positive outlook.

The pair currently trades last at 24.111.

The previous day high was 24.53 while the previous day low was 24.2. The daily 38.2% Fib levels comes at 24.4, expected to provide resistance. Similarly, the daily 61.8% fib level is at 24.32, expected to provide resistance.

Silver extends Friday’s retracement slide from the $24.50-$24.55 area, or its highest level since May 11 and continues losing ground on the first day of a new week. The steady descent drags the white metal to the 38.2% Fibonacci retracement level of the downfall witnessed in May, around the $24.00 round-figure mark during the Asian session.

The said handle represents a strong horizontal resistance breakpoint and should act as a pivotal point for intraday traders. Any subsequent fall, meanwhile, could be seen as a buying opportunity and remain limited near the $23.60-$23.55 confluence – comprising the 200-period SMA on the 4-hour chart and the 23.6% Fibo. level. Against the backdrop of positive oscillators on daily/4-hour charts, the said area should act as a strong base for the XAG/USD and limit the downside.

That said, a convincing break below the aforementioned confluence support will shift the bias in favour of bearish traders and prompt aggressive technical selling. The XAG/USD might then accelerate the fall towards the $22.00 mark and then slide further towards challenging a nearly two-month low, around the $22.70-$22.65 region touched in May. The downward trajectory could get extended further towards the next relevant support near the $22.00 round figure.

On the flip side, bullish traders might now wait for some follow-through buying beyond the $24.45-$24.50 area, or the 50% Fibo. level, before placing fresh bets and positioning for an extension of the recent rally witnessed over the past two-and-half weeks or so. The XAG/USD might then aim to reclaim the $25.00 psychological mark and climb further towards the $25.35-$25.40 intermediate hurdle. Bulls might then make a fresh attempt towards conquering the $26.00 round figure.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 24.11 at the time of writing. Pair opened at 24.29 and is trading with a change of -0.74 % .

The pair is trading above its 20 Daily moving average @ 23.58, below its 50 Daily moving average @ 24.49 , above its 100 Daily moving average @ 23.35 and above its 200 Daily moving average @ 22.26

The previous day high was 24.53 while the previous day low was 24.2. The daily 38.2% Fib levels comes at 24.4, expected to provide resistance. Similarly, the daily 61.8% fib level is at 24.32, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 24.15, 24.01, 23.82
• Pivot resistance is noted at 24.48, 24.67, 24.81

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