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Silver (XAG/USD) is approaching the 55-day ma at 26.25 but the metal will need to regain the 26.69 level to reassert upside pressure, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Silver underpinned by the 55-week ma at 22.97

“The price of silver recently sold off towards and bounced just ahead of the 9th December low at 23.57. It has eroded the two-month downtrend and is well placed to challenge the 55-day ma at 26.25 and the mid-March high at 26.69.”  

“The market will need to regain 26.69 on a closing basis to confirm upside intent to the 28.37 23rd February high and the 30.09 1st February high. Failure here will trigger a retest of the 23.57 support and the 78.6% retracement at 23.17. This is seen as the last defence for 22.97 55-week ma.”