Silver Price Analysis: XAG/USD set to suffer a correction lower – Commerzbank

Silver has again failed ahead of Fibonacci retracement at $28.73 as XAG/USD is seeing some profit-taking. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank reverts its attention to support at $25.65.

XAG/USD fails to tackle the 78.6% retracement at $28.74

“Silver has again failed ahead of $28.73, the 78.6% retracement and we suspect that we will see a correction lower take hold near-term.”

“We have a near-term uptrend at $27.64, ahead of the 55-day ma at $26.39 and the near-term pivot at $25.65, the 8th April high. This is expected to hold the downside and while above here we will maintain an immediate positive bias. Below here lies the $24.68 12th April low and $23.76/57 the lows of the past 5 months.” 

“Resistance at $28.73 is regarded as the last defence for the $30.09 1st February high.” 

“Longer-term, we are bullish and a break above $30.09 will target the $30.76/50% retracement of the entire move down from 2011.”