Silver (XAG/USD) is consolidating at the 200-day moving average and holding over the 55-week ma at $25.31. In the long-term, economists at Commerzbank retain a bullish bias.
“Silver has spent the past 2 weeks consolidating around the 200-day moving average at $25.85, but the focus remains on its current June low at $25.53. This support is reinforced by the 55-week ma at $25.31. This is expected to hold the downside and while above there we will maintain an overall still positive bias.”
“Below $25.31 lies the 24.67 April 13 low and $24.21/$23.76, the January and March lows.”
“Good resistance can now be spotted between the midMarch and mid-April highs as well as between the mid-May and early June lows at $26.69/$27.01. Further minor resistance can be found between the December, January and May 10 highs at $27.44/92.”
“Longer-term, we so far remain bullish and a break above the $30.09 February peak would target the $30.76 50% retracement of the entire move down from 2011.”
