Silver: Downtrend at 25.77 represents the barrier on the topside – Commerzbank

Silver (XAG/USD) has rallied to and failed at the three-month downtrend at 25.77. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, maintains a negative bias while the precious metal trades below the mentioned downtrend.

Key quotes

“Silver has recently rallied to and so far failed at its three-month downtrend at 25.77. While capped here, near-term risks remain on the downside and we would allow for a retest of the 21.64 September low 21.63, the July 2014 high.” 

“The downtrend at 25.77 guards the 28.93 and 29.89 recent peaks.”

“Initial support lies at 22.59, the low from end of October. The 21.40 2008 peak guard the 200-day ma at 20.39, where we would look for signs of stabilisation, if seen.”