Silver Price Analysis: XAG/USD retains a medium-term bullish bias above $20.75 – DBS Bank

Silver’s decline from 30.10 appears to be held into a 23.78 drop. Unless XAG/USD sustains losses under 20.75, the medium-term bullish bias remains intact, Benjamin Wong, Strategist at DBS Bank, reports.

Harvesting to refresh longs on dips

“The weekly Ichimoku chart portends that silver’s underlying medium-term bullish bias and rally from March 2020’s 11.64 lows remain intact – unless we see a sustained collapse under 20.75.”

“On the daily charts, silver is now running up against Donchian Channel resistance at 26.64. Also, just above that are sturdy resistance levels popping up at 26.94 (50% Fibonacci retracement of 30.10-23.78 range extremes) and 27.07.”

“There is increasing optimism that despite the conflicting signals on the different time horizons, silver bulls are slowly coming back into the picture.”

“The decline from 30.10 towards 23.78 appears fashioned as a falling wedge or ending diagonal pattern. That places the onus to buy dips until the consolidation phase plays out, which must be delivered via a determined push higher.”