Silver Price Analysis: XAG/USD strives to break above $29.86 – Credit Suisse

XAG/USD is undergoing a concerted effort to resume its core uptrend with silver resuming its outperformance trend to gold as expected by strategists at Credit Suisse.

Key quotes

“Silver maintains a multi-year base and we look for a sustained move above $29.86 to confirm a bullish ‘triangle’ continuation pattern to see the range resolved higher for a resumption of the core uptrend, with resistance next at the 50% retracement of the 2011/2020 bear market at $30.72, with our core objective still at $35.23/35.365 – the 61.8% retracement and key high from October 2012.” “Support at $24.05 needs to hold to keep the immediate risk higher.”

“The Gold/Silver ratio has resolved its range from August to the downside as expected for the completion of a bearish continuation pattern and we look for a fresh and significant move lower again in the ratio and Silver outperformance and a fall to 51.47.”