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Silver: Negative bias below the downtrend at 26.00 – Commerzbank

Silver (XAG/USD) has rallied to and failed at the three-month downtrend at 26.00. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, is unable to rule out losses to the 200-day ma at 20.22 but 21.64/63 is still acting as a decent support.

Key quotes

“Silver has rallied to and so far failed at its three-month downtrend at 26.00. While capped here, near-term risks remain on the downside and we would allow for a retest of the 21.64 September low 21.63, the July 2014 high.”

“The downtrend at 26.00 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. The 21.40 2008 peak guard the 200-day ma at 20.22, where we would look for signs of stabilisation, if seen.”

 

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