Silver needs to break this level to confirm a bullish sign
(Kitco News) - Silver has in a bit of a consolidation phase on the 4-hour chart below. The price has now been stuck just below the red shaded resistance area for around 25 days. If the bulls are to get a hold of this market then the resistance they need to break is at the previous wave high near $23.22/oz.
Volume has been on the light side since the poor NFP result last Friday. It was interesting that the spike higher could not be sustained and the price moved straight back into the lower distribution area. The price is now holding at the mean value area of that distribution at $22.64/oz and a sustained move below could take the price to the next support at $22.41/oz.
All in all the price is still technically trending lower. For this to change a higher high and higher low needs to be established. The only way that is going to happen is if the $22.96/oz resistance is firmly broken.