Massive support coming up for the silver price
(Kitco News) - Over the last few weeks, precious metals have struggled as yields offered another option and the U.S. dollar gained in value. Silver has been no exception and the grey metal has fallen 18% in 4 weeks. Looking at the technicals (weekly chart), the price looks to be heading towards the consolidation low at $21.41/oz. There is a support level at the wave high from 5th July 2016. There is a low volume node on the volume profile indicator at around the $21/oz level which could offer some support. Beyond that, the blue area at $18.87/oz is the next area that could halt the move lower.
|Chinese gold reserves hold at 62.64 million ounces|
If the price does get some relief and move higher the biggest resistance area is at the orange level just below $25/oz. There is some traffic on the way at $22.58/oz. Interestingly, the volume is still looking pretty light. If there is to be a break through the support then higher volume would confirm the move. At the moment the bears are in charge but this week seems like an important one.