Make Kitco Your Homepage

The technical base pattern in silver is looking stronger

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 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.

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.