Silver moves higher ahead of the U.S. open
(Kitco News) - Silver has been performing well in recent sessions and is trading 1.45% higher on Tuesday. Interestingly, this comes despite the dollar continuing to push higher against some major currencies. The dollar index is 0.19% higher so far in the session but base metals like copper are struggling today so the move higher seems to be a precious metals move.
Looking at the 4-hour chart below the price is testing the top of the channel formation and this could be a resistance zone. If that is not the case and the price does move higher then the next major level to look out for on the upside is at the red zone near $18.86/oz. Beyond that, the purple zone at $19.40/oz is the next major resistance but at the moment the odds of that being challenged in the short term are unlikely.
On the southside, the blue area at $18.08/oz is a pretty stubborn level. The price bounced there back in mid-July and moved significantly higher following the test. There is another level below and that is the previous wave low at $17.54/oz and this would continue the trend of lower highs and lower lows. That pattern would only be broken if the aforementioned red zone is broken to the upside.