Silver (XAG/USD) below $21.68/42 would confirm a major top is in place and an important change of trend lower. Strategists at Credit Suisse would then see support at $19.65 initially, ahead of $18.69/64.
Silver is closer to establishing a major top
“Silver is seen under more pressure and is already closer to the lower end of its medium-term range at $21.68/42, with recent strength having been capped at its 200-day average and then more recently at its 55-day average.”
“Our bias stays lower for an eventual sustained break of $21.42 to confirm a major top is in place and important change of trend lower. We would then see support at $19.65 initially, ahead of $18.69/64.”
“A close above $25.41 is needed to ease fears of a top and instead set a base, opening the door to a move back to the $30.10 high.”