Gold Price Analysis – XAG/USD to bounce to $23.77 as finds finds solid floor at $21.87/17 – Commerzbank
Silver (XAG/USD) has tested major support in the $21.87/17 band, which has held. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the metal to rebound towards the 55-day moving average (DMA) at $23.77.
Silver’s dive lower has held over the $21.87/17 major support
“Silver has sold off to test its long-term pivotal support at $21.87/17, which have so far held. 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 act as a floor for the market.”
“We note again the complex divergence of the daily RSI and would allow for a corrective rebound to the 55-DMA at $23.77.”
“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.”
“Below $21.17 (not favoured) would see another leg lower to the $20.75/50% retracement and then the 200-week ma at $19.14.The 200-month ma lies at $18.93.”