Silver (XAG/USD) is witnessing some weakness. Downside risks remain for the precious metal while capped by the 55-day moving average (DMA) at $24.72, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.
“Silver remains capped by the 55-DMA at $24.72. The recent rally is regarded as corrective only and we are alert to failure here. This would cast attention back to the long-term pivotal support at $21.87/17. These represent the September and November 2020 lows and also the July 2014 high and the 2016 high. These are considered to be a major band of support and we expect them to hold.
“Initial resistance is the $24.95 recent high, but resistance extends up to tougher resistance offered by $26.07, the August high. The market will need to regain this area to regenerate bullish impetus we suspect.”
“Initial support is $22.85. Below $21.17 (not favoured) would see another leg lower to the $20.75/50% retracement and then the 200-week ma at $18.95.”