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