Make Kitco Your Homepage

Silver futures technical analysis - important levels surround the current price area

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - The daily silver futures price chart is still in full consolidation mode but still has a better structure than gold. The precious metal has been hovering around the $25.00/oz mark in the EU session but it does seem like we are at a stubborn support. It must be positive that the price has not capitulated like the yellow metal.

Looking closer at the chart the support line at $25.27 is currently holding but even if there is to be a break to the downside the next support zone is at the mean value are marked in the red shaded zone. The trendline break was bearish but trendlines are often retested so if there is to be some break in the greenback strength that could be a target.

On the upside, another resistance could be the red shaded zone above the current price. It has been a pretty sticky zone in the past and there has been lots of volume noted in the area between $27.06-40/oz. Since February it must be noted the volume has been much lighter but that was when the "Reddit traders" attacked the SLV ETF.

It could be a while before we see higher prices as the current US dollar rally shows no sign of slowing down but it is important to note that the silver price is consolidating while gold consistently breaks through support areas. With this in mind keep an eye on the consolidation low of $22.05/oz. 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.