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According to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, silver has formed an interim base at 24.20 (61.8% retracement) and should once again recover.

Key Quotes:

“Silver has held steady over the past week – it recently sold off and recovered from support at 24.20 (61.8% retracement). We suspect that the market has seen an interim base here and should once again recover.

This, together with the December low at 23.56, guard the 200-day ma at 22.74. Currently, we are neutral.

Recovery off the 24.20/23.56 band should see the market re-try the topside but the recent high at 27.97 and Fibo resistance at 28.12 are a tough barrier to overcome.

28.12 is seen as the last defence for the 28.93 and 29.89 peaks from last year.”