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According to strategists at Credit Suisse, silver is set to experience a further consolidation period, with the 38.2% retracement of its 2020 rally at $22.90 ideally holding.

Key quotes

“Silver is expected to extend its consolidation phase, but with support at $23.50/22.90 still ideally holding. Above $28.91 would suggest the trend is turning higher again with resistance above the $29.86 current cycle high seen next at $30.72 and eventually we think more meaningfully and what is our base case objective at $35.23/35.365, which is the 61.8% of the entire 2011/2020 bear trend and key price resistance from September 2018.” 

“Below $22.90 would warn of a deeper corrective setback with support next at $20.75, then $19.65.”