Silver (XAG/USD) has seen a swift rejection from the 78.6% retracement at 28.12. According to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, near-term risk remains for losses to the 200-day ma at 22.24.
“Silver was rejected by the 78.6% retracement at 28.12 last week, and sold off sharply. The sell-off is attempting to stabilise at the 61.8% retracement at 24.20, this together with the December lows at 23.56 guard the 200-day ma at 22.24. Currently, near-term risks remain on the downside.”
“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. This is seen as the last defence for the 28.93 and 29.89 peaks from last year.”