Silver has established its looked for base and has already moved to the first resistance at $26.09/22. Whilst strategists at Credit Suisse look for a pause here, they see scope for further gains ahead, ideally to $35.23/365.
“Silver has seen an even more dramatic move higher than Gold over the past few weeks, confirming the flagged multi-year base above $19.65, and strength has already extended to our flagged resistance at $26.09/22 – the 38.2% retracement of the entire 2011/2020 bear market and key lows from 2011 and 2012.”
“We expect the $26.09/22 level to prove a tough initial barrier and look for some consolidation here. A break in due course can see resistance next at the 50% retracement at $30.72 and then what should be a tougher initial barrier at $35.23/35.365.”
“Support for a setback is seen at $22.76/22.26, which we look to try and hold. A break can see a deeper pullback to $20.65, which we look to then ideally prove a better floor.”