Silver Price Analysis: XAG/USD's slide lower is over – Commerzbank

Silver (XAG/USD) has not seen a new low not confirmed by the daily RSI. Karen Jones, Team Head FICC Technical Analysis Research at  Commerzbank, will allow for some near-term consolidation.

New low not confirmed by the daily RSI

“Silver has sold off to $22.02 and the new low has not been confirmed by the daily RSI, which reflects a loss of downside momentum. Rallies are expected to find the 55-day ma at $24.39 offers tough nearby resistance.” 

“Directly below the market lies 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 act as a floor for the market.”

“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.” 

“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 $19.08.”