Silver Technical Analysis: Upside levels in focus
(Kitco News) - Precious metals have had a nice rally over the past few sessions and silver has now taken out a nice resistance at $24/oz. The daily futures contract price contract is also testing a trendline and looks to be printing above the zone as we speak. Looking forward the next major resistance stands at the green zone but there could be a sticky area at the psychological $25/oz area too. There is a second major trendline above the one that is being tested now and it looks stronger as there have been more tests and touches. If that does break however it could indicate a longer-term bullish move.
On the downside, $22/oz has established itself as a formidable support area and the base of the consolidation. There has been a higher low print at the previous wave low ($21.94/oz) but the orange zone is key. The top of the previous wave $23.48/oz could be a support zone on the lower timeframes and might provide the base for the next lower high but only time will tell. For now, the price is making higher highs and higher lows and the silver contract is looking shiny.