Silver, represented by #XAGUSD, experiences resistance from an increase in supply, causing it to lose some of its previous overnight gains and decline from its three-week high.

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• Silver meets with some supply and erodes a part of the overnight gains to a three-week peak.

The pair currently trades last at 24.167.

The previous day high was 24.36 while the previous day low was 23.41. The daily 38.2% Fib levels comes at 24.0, expected to provide support. Similarly, the daily 61.8% fib level is at 23.77, expected to provide support.

Silver comes under some selling pressure on Thursday and for now, seems to have snapped a five-day winning streak to a three-week high, around the $24.35 region touched the previous day. The white metal extends intraday descent through the early European session and drops to a fresh daily low, around the $24.15 region in the last hour.

From a technical perspective, the extremely overbought Relative Strength Index (RSI) on hourly charts turns out to be a key factor that prompts some long-unwinding around the XAG/USD. That said, oscillators on the daily chart have just started gaining positive traction. Furthermore, the overnight breakout through the $23.75 confluence, comprising the 200-period Simple Moving Average (SMA) on the 4-hour chart and the 50% Fibonacci retracement level of the July-August downfall, favours bulls.

Hence, any subsequent slide below the $24.00 round-figure mark is more likely to attract fresh buyers near the aforementioned confluence breakpoint, now turned support. This should help limit the downside for the XAG/USD near the $23.40 region. This is closely followed by support near the $23.25 area, which if broken could drag the white metal back towards the $23.00 mark. A convincing break below the latter will negate the positive outlook and shift the near-term bias in favour of bearish traders.

On the flip side, bulls might now wait for some follow-through buying beyond the overnight swing high, around the $24.35 area, before placing fresh bets. The XAG/USD might then aim to surpass the $24.55-$24.60 intermediate hurdle and climb further to the $25.00 psychological mark en route to the July monthly swing high, around the $25.25 zone. Some follow-through buying will mark a fresh breakout and pave the way for a further near-term appreciating move toward the $26.00 round figure.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 24.15 at the time of writing. Pair opened at 24.32 and is trading with a change of -0.7 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 23.32, 50 SMA 23.52, 100 SMA @ 23.99 and 200 SMA @ 23.32.

The previous day high was 24.36 while the previous day low was 23.41. The daily 38.2% Fib levels comes at 24.0, expected to provide support. Similarly, the daily 61.8% fib level is at 23.77, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 23.7, 23.08, 22.75
• Pivot resistance is noted at 24.65, 24.98, 25.6

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