Silver holds $21/oz but the level still looks under threat
(Kitco News) - The price action in precious metals can be described as sideways at the moment and silver has been consolidating since 8th May. The 4-hour futures chart below shows the price has been stuck between $20.42/oz and $22.56/oz for some while some other assets have succumbed to the U.S. dollar strength to a larger degree.
Looking at the technicals, the price is trading below the volume point of control area (VPOC). This could mean it has a slight negative bias. Having said that there are some strong support zones hanging around. The green zone marked on the chart represents a price level that has been used successfully as support on four occasions on this chart alone. There is also an upward sloping trendline and the main low on the chart at the aforementioned consolidation low.
On the upside, there is more traffic. The next resistance is the really congested VPOC area at around $21.86/oz. This has been acting like a magnet for the silver price for a while now and on the way up the area could be very sticky. Beyond that, there is the $22.25/oz resistance level and the consolidation high at $22.56/oz.