Silver: Consolidation phase ahead of a fresh move higher – Credit Suisse

Strategists at Credit Suisse expect a lengthy consolidation phase in silver, similarly to gold. The white metal sees resistance at $30.72 while support at $22.90 holds further weakness.

Key quotes

“Silver is seeing a consolidation phase, but with a multi-year base in place and with the market still well below its record highs this remains seen as a temporary breather ahead of a fresh move higher in due course, with resistance seen next at $30.72 and eventually we think more meaningfully and what is our base case objective at $35.23/35.365, which is the 61.8% of the entire 2011/2020 bear trend and key price resistance from September 2018.” 

“Support at $22.90 ideally holds further weakness – the 38.2% retracement of the 2020 rally thus far. A break though would warn of a deeper corrective setback with support next at $20.75, then $19.65.”