FXStreet reports that silver (XAG/USD) has rallied to and failed at the three-month downtrend at 25.49 and is now eroding its six-week support line. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, is unable to rule out losses to the 200-day ma at 20.53 but 21.64/63 should as decent support.

“Silver remains negative while contained by the three-month downtrend at 25.49. It has started to erode a six-week support line and near-term risks remain on the downside.” 

“We would allow for a retest of the 21.64 September low 21.63, the July 2014 high. The 21.40 2008 peak guard the 200-day ma at 20.53, where we would look for signs of stabilisation, if seen.” 

“Initial support lies at 22.59, the low from end of October.”