Silver Price Analysis: XAG/USD to extend its rally towards the $24.61/$25.30 zone – Commerzbank

Silver (XAG/USD) remains upside corrective. The precious metal is expected to head into the $24.61/$25.30 band, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Silver to grind lower on a break below $21.17

“Silver continues to recover off 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. 

“Given that the spike lower is viewed as an exhaustive move, we will for now maintain our longer-term bullish bias.”

“Initial resistance is the $24.46 the 27th July low but tougher resistance is not encountered until 26.07, the current August high.”

“We note that the Elliott wave count is implying a $24.61/$25.30 move and would allow for that.” 

“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.”