FXStreet reports that Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes that silver (XAG/USD) has eroded its four-month downtrend and 55-day moving average and is expected to rally higher.
“Above the market is the $24.95 recent high, but resistance extends up to tougher resistance offered by the 200-day ma at $25.56 and $26.07, the August high. The market will need to regain this area to regenerate bullish impetus. Please note that the 55-week ma also lies at $25.30. We favour the topside but it may take several attempts to clear this band.”
“Initial support is $22.85, the 20th August low but the market is underpinned by its long term pivotal support at $21.87/17... These are considered to be a major band of support and we expect them to act as a floor for the market.”