Silver Price Analysis: XAG/USD rally to fail at the $24.87 resistance – Commerzbank

Silver’s correction higher is approaching the three-month resistance line at $24.87. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, suspects that the precious metal will struggle here.

XAG/USD to suffer a major fall to $18.95 on break below $21.17

“Silver is approaching the three-month resistance line at $24.87, 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 $24.46 the 27th July low but extend up to tougher resistance offered by $26.07, the current 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.”