Silver extends its consolidation from just above support from the rising 200-week average, now seen at $20.36. In the view of strategists at Credit Suisse, this strength stays seen as temporary with a major top still in place.

Silver unlikely to stabilize above 200-DMA at $23.50

“With a large and significant top seen in place, this remain seen as a temporary pause only ahead of a sustained break lower in due course with support then seen next at $19.65 initially, then $18.95/40, which we look to hold at first for a consolidation phase.” 

“Only above the 200-day average, currently at $23.50, would stabilize the precious metal more meaningfully, which is not our base case.”