Silver Price Analysis: XAG/USD downside pressure should recede – DBS Bank

Silver now trades out of March, typically the second worst month for silver longs on seasonality studies – hence downside pressure should recede. Any near-term dip can now count on the support of key pivotal moving average located at 23.89, Benjamin Wong, Strategist at DBS Bank, reports.

March is typically the second worst month for silver longs

“Considering seasonality studies, this takes silver out of the month of March. March typically is the second worst month to own silver, if one back tests 10 years of seasonality studies. This makes the risk-reward of trading long silver more palatable.”

“The weekly chart is seeing a basing process. The 21.42 low has fashioned itself as a workable intermediate double bottom. Take note of the pivotal 40-week moving average around 23.89 – recall that this moving average level capped silver at 25.40 in mid-November before yielding to an upside break on the Russian invasion of Ukraine.”

“An overhead resistance runs in at 26.72 but a break opens up the Fibonacci extension zone of 28.45-29.38.”