Silver looking vulnerable on the technical front
(Kitco News) - Looking at the silver futures 4-hour chart it seems that the market is favoring short side trades as a fresh new push lower has been made in the EU session. The price is now just over 1% lower and is testing $23.50/oz at the time of writing.
The next bank of support is at the green zone just around $23.38/oz. This area has been used well in the past specifically on 27th August as the price pushed higher. Below that there is the consolidation low at $22.83/oz and the main low on the chart of $22.29/oz.
One other bearish signal is the price is trading below the volume point of control (VPOC). this is where most contracts have been traded on the chart and this could tip the balance in favor of the shorts. This means the price is below the most averagely traded area. The next distribution down on the higher timeframes is way lower close to $18/oz.
All in all, since the price broke the purple trendline and moved lower it has been lower highs and lower lows. The next wave low stands at $23.36/oz and if there is to be a break lower from there it could see the bears stay in charge for a bit longer.