Silver Price Analysis: XAG/USD to recover towards tough resistance at $26.07 – Commerzbank
Silver’s spike lower is viewed as exhaustive and held over a major band of support. Strategists at Commerzbank would allow for consolidation and recovery.
XAG/USD longer-term bullish bias maintained
“Silver saw complete rejection from the 200-day ma and sold off aggressively towards the long-term pivotal support at $21.87/17. It is considered to be a major band of support. Given that the market has spiked down to this area and recovered we will for now maintain our longer-term bullish bias.”
“Initial resistance is the $23.76 March low and $24.46 the 27th July low but tougher resistance is not encountered until $26.07, last week's high.”
“Below $21.17 (not favoured) would see another leg lower to the $20.75/50% retracement and then the 200-week ma at $18.88.”
Author
FXStreet Insights Team
FXStreet
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