Silver price (XAG/USD) had a massive surge towards $30 on Monday following the coordinated push by retail investors. Just as fast, the white metal sold off and found support at the 26.325 price level. But as Commerzbank analysts have indicated, further upside could be on the cards.
As Commerzbank analysts have confirmed, the trend remains bullish, as far as silver price remains above the low of 18 January, which registered 24.21. Initial support is noted at 25.34. Commerzbank also has a projection for the price to extend towards 31.715 if the price pushes above 30.09. There is also a longer-term chance of the October 2012 high (35.47) of being targeted.
This analysis could explain why the price has retained upside bias following yesterday’s selloff. However, today’s upside move appears muted when compared with the price move of Monday.
Technical Levels to Watch For
The upside move comes off a bounce on the upper boundary of the channel, as well as the 26.325 support. This move has faltered and required more bullish momentum to target 27.502. Above this level, 28.07 remains the only barrier before a return to Monday’s highs.
On the flip side, downward pressure from the bears could put 26.325 at risk. This presents a potential for a breakdown towards 25.227, where the channel’s lower border is located. Downside targets at 24.56 and 23.16 come into the picture if the channel breaks down. This scenario would negate the uptrend.
Silver Price (XAG/USD) Daily Chart