Silver trades higher but there are some hurdles
(Kitco News) - Silver is trading half a percent higher on Tuesday leading into the U.S. open. Precious metals have had a good start to the session even as the U.S. dollar has moved back to flat after trading lower overnight. The price of the grey metal is currently $21.27/oz after the price rejected the psychological $21/oz area overnight.
The 4-hour chart below, shows the grey trendline being used as support as the price made a small retracement wave lower. The key short-term resistance is now at the previous wave high of $21.53/oz as any break of this could take the price towards the next resistance (in orange) and then the consolidation high at $22.56/oz.
On the downside, there are three key levels on this chart. The first is the aforementioned grey trendline. Beyond that, there is the previous wave low at $20.54/oz and then the consolidation ow at $20.42/oz. Volumes are light at the moment but it would be fair to assume that could pick up in the U.S. session and a move higher toward resistance zones if the momentum builds.