Spot silver price (XAG/USD) is in the news again, as Head of FICC Technical Analysis Research at Commerzbank, Karen Jones, provides the bank’s outlook for the white metal.
According to Jones, Commerzbank believes that silver prices will regain bullish potential if the price crosses the $26.69 price mark, which is the high of mid-March. The bank sees the bounce on the 9 December low at 23.57 as the pivot for this move and expects silver prices to challenge sequential resistance barriers, including the 26.69 high. The bank expects bulls to make a push towards the 23 February high at 28.37 and the 1st February high at 30.09 in the quest for upside potential.
The bank expects this outlook to be invalidated by a failure to break beyond 26.69, which would allow the price to retest 23.57 and 23.17.
Silver prices are up on the day after the US Dollar lost momentum despite a higher-than-expected inflation reading.
Technical Outlook for Silver Price
Silver price on the daily chart of the XAG/USD asset is challenging resistance at 25.386, following the bounce on the lower border of the flag. If there is a breakout above this level, then silver price bulls can send the price towards the 26.034 resistance. Above this level, further resistance barriers may be seen at 26.868 and 27.502.
On the other hand, a rejection at the current support could send prices back to the lower border of the flag, where a breakdown of this border could initiate a dash towards the ceiling of the demand zone at 24.00. This move would need to take out the 24.569 level to be actualized.
Silver Price (XAG/USD) Daily Chart
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