The technical base pattern in silver is looking stronger
(Kitco News) - The 4-hour chart below shows that silver is recovering from a long-term downtrend. The price dropped from 1st June ($28.71/oz) down to $22.29/oz. Since that point, the price has made 3 higher lows and broke through the $23 and $24/oz psychological zones.
The price has moved out of the value area of the current consolidation but the bulls will be looking to see if the $24.68/oz resistance level can be broken to the upside. Beyond that point, the next resistance zone lies at $25.69/oz.
On the downside, any break below $23/oz could spell trouble for the bulls. The grey upward sloping trendline is also important from a technical standpoint. If it breaks it could mean that this move higher was just a retracement and the downtrend could continue. If that happens, $22.29/oz would be a significant support area.