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Silver holds $21/oz but the level still looks under threat

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(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.

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.