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Silver is heading to trade at a two year low

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(Kitco News) - Silver is breaking down in the European session and is currently 1.53% in the red. To demonstrate the next support levels the weekly chart had to be used as there were none close by on the daily timeframe. This is currently the lowest level the silver price has traded since 21st July 2020. 

Looking at the weekly chart below, the green zone has been conclusively broken to the downside. The next meaningful support is at the orange line at $19.75/oz. This is the wave high from 3rd September 2019. However, there is the $20/oz psychological support zone in the way and the price could stall there first. 

On the volume profile indicator, the main volume point of control is at the $17/oz area. There is a distribution high volume node at $17.97/oz and $9.75/oz. All in all, the price is in a heavy downtrend, and supports should be taken note of. 

 

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