Silver has extended its recent and definitive rejection of its key falling long-term 200-day moving average (DMA) for a retest of its major support at $21.68/42. A break below here would confirm a major top, clearing the way for a fall to the $17.00, strategists at Credit Suisse report.
“A clear and ideally weekly close below $21.42 should confirm a major top, further reinforcing our existing negative view and confirm a change of trend lower for 2022. We would then look for a fall to the September 2019 high at $19.65 initially, then the 61.8% retracement of the 2020/2021 bull trend and ‘neckline’ to the prior long-term base at $18.69/64.
“Whilst we would expect $18.69/64 to hold at first, we would be biased to a break below here with support then seen next at $17/16.95.”
“A close above the $25.41 November high is not only needed to ease fears of a major top, but it would also see the metal back above its 200-DMA, clearing the way for strength back to the 2021 highs at $29.86/30.10.”
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.