(Kitco News) - The silver futures contract is down around 0.71% so far on Wednesday as the price action remains pretty sideways. Even if this is the case, there are some firm intraday levels that the market has been bouncing off that should be noted.
On the hourly chart below, the price has hit the red shaded area once again. This is called the volume point of control and is the point in the chart where most contracts have changed hands. There seems to be a massive attraction to this price point as on this chart alone the price has bounced off the area six times over the last few days.
This does not mean the level will be broken. If it does break look out for the amount of volume it takes to crack the zone from the histogram at the bottom of the chart. That could tell us about the force of the bears in the market at the moment.
Above that, the purple level close to $22.25/oz has been rejected and this has made a lower high wave. For a negative trend to be confirmed the aforementioned red area needs to be broken on the downside. Then the green support at $21.68/oz would be the support to watch.
On the topside, the main area of resistance is the consolidation high at $22.47/oz. The price has had three attempts to break out and the bulls have not quite managed it. Again, volume is important as each time the market tried the volume declined which suggests there just is not enough momentum at the moment for it to happen.
