Make Kitco Your Homepage

This silver price breakout looks like the real deal

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 silver price breakout looks to be gathering momentum. As you can see from the daily price chart below, silver has made a new "higher low/higher high" pattern and pushed above the psychological $25/oz area. This seems to have much to do with the correlation with gold and other precious metals being bulls. Still, nevertheless, the market is backing the grey metal.

Looking closer at the technicals, the trendline in grey has been broken conclusively. There is always the chance of a trendline retest, but the encouraging sign is that the volume increased on the break higher. Also, the price is above the volume point of control (VPOC) marked by the red horizontal line. This is a decent signal that the trend is becoming more bullish.

In terms of resistance zones, the next one is marked by the high volume nodes on the volume profile indicator. $26/oz had been sticky in the past and could be once again. Beyond that, $28.90/oz is the more important one, and if prices get that high, the prominent $30.35/oz is next.

On the downside, the VPOC (red line) area is next but the consolidation low just below $22/oz is the main area of support.


How much silver is in a missile? Impact of Putin's War on silver price and demand - Keith Neumeyer

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.