The silver price is heading into a support area
(Kitco News) - Silver technicals are showing the silvers futures price is still in a downtrend on the 4-hour chart. The price has been making consistent lower highs and lower lows but found support at around $25/oz a few times now. Having said that, the price has dipped below to reach $24.51 and jumped back up on decent volume.
From a volume profile perspective, the price is nearing the high volume node of the current distribution at $25.25/oz. There could be some support there as the high volume nodes on the chart have been used to good effect on many occasions as both support and resistance. If there is a breakthrough it normally has to be off the back of good volume to take the price to the next distribution zone.
Looking ahead, the obvious zone for the bears to target is the break of the psychological $25/oz area. if this is not achieved I think traders could look higher up. The next resistance is the massive congestion area at $26.11/oz. It would take some decent volume to get the price through there. Beyond that, the purple horizontal at $26.91/oz is the next major resistance.