Technical analysis says gold and silver both on the path for a drop
Commerzbank see drops ahead for both silver and gold.
- We would allow for a corrective set back to the 23.6% retracement at 22.80 and the 38.2% retracement at 20.67 (of the move from March). We also have the 21.17 September 2019 high in this vicinity. Provided dips lower hold over the four-month uptrend at 19.26, an upside bias will be reserved.
- Above 26.14 will target initially 27.42, the 38.2% retracement of the move from the 2011 peak. And then the 50% retracement at 31.71 of the same move.
Silver weekly candles
- Gold has reached the top of its 49 year channel at $1983. It represents our long-term target. This should hold the initial test and provoke some profit-taking.
- Forays above $2000 are expected to remain short-lived. Above $2000 we have a point and figure target of $2030 and a Fibonacci extension to $2088.
- Support is offered by the 55-day ma at $1838 and the five-month uptrend at $1829. Below 1829 lies the $1765 May high. This guards the $1670 June low.