Silver Price Analysis: XAG/USD to seed a bull setup towards 200-DMA at $25.38 – DBS Bank

Calm has finally returned to the silver market as it recovers from the $21.43 low that was posted in late August. Benjamin Wong, notes that notes that there is a minor bullish inverse-head-and-shoulders pattern awaiting a breach of its neckline around $24.82, which would open up the 200-day moving average (DMA) at $25.38, then $26.38.

Silver is recovering from the $21.43 low posted in late August

“Calm is returning to the silver market as the third attempt to breach the mid-21’s level steadfastly held. This gives credence to the key support provided by a key Fibonacci marker at $21.51.”

“Silver located an ending diagonal low at $21.43 and is attempting to break the neckline of a bullish inverse head-and-shoulders pattern around $24.82. An affirmation of the latter would lead to test of higher grounds via passage of the 200-DMA at $25.38 before XAG/USD approaches the dropped down resistance trailing from $30.10 highs (around $26.38).”