Silver (XAG/USD) has faltered just ahead of the September high at $24.95 and is consolidating. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the precious metal to enjoy further gains towards the 200-day moving average (DMA) at $25.53 while above the 55-DMA at $23.41.

Dips to hold over the $21.87/17 major support

“Silver has rallied towards and failed just ahead of the $24.95 recent high and looks to be easing back to the 55-DMA at $23.41, provided it stabilizes around here an upside bias will remain.”

“Resistance extends up to tougher resistance offered by the 200-DMA at $25.53 and $26.07, the August high. The market will need to regain this area to regenerate bullish impetus. Please note that the 55-week ma also lies at $25.29. We favour the topside but it may take several attempts to clear this band.” 

“Initial support is the 55-DMA at $23.41 ahead at $22.85, the 20th August low but the market is underpinned by its long term pivotal support at $21.87/17. These are considered to be a major band of support and we expect them to act as a floor for the market.”