Silver (XAG/USD) has rallied to and failed at the three-month downtrend at 25.49 and is now eroding its six-week support line. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, is unable to rule out losses to the 200-day ma at 20.53 but 21.64/63 should as decent support.
Key quotes
“Silver remains negative while contained by the three-month downtrend at 25.49. It has started to erode a six-week support line and near-term risks remain on the downside.”
“We would allow for a retest of the 21.64 September low 21.63, the July 2014 high. The 21.40 2008 peak guard the 200-day ma at 20.53, where we would look for signs of stabilisation, if seen.”
“The downtrend at 25.49 represents the barrier on the topside. This guards the 28.93 and 29.89 recent peaks.”
“Initial support lies at 22.59, the low from end of October.”
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