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(Wallace Refiners) – The silver chart below shows that there has been a decent rejection of a key technical area. The area at $24.30/oz is an important value area as it is the peak of where the most trading activity has taken place on the chart over this time period.
Now the price is back in the consolidation zone between $24.30-27.00/oz. On the topside, the next important area is at the top of the aforementioned consolidation zone at $27/oz. Before that, there is another resistance zone at $26.14/oz that needs to be watched as the price could react there.
On the downside, the bottom of the previous eave low is the next support but if there is a break of that zone the main support area stands at $21.81/oz. Interestingly, the last daily candle has a decent rise in volume at the lows. This could meed that there is some market backing for the rejection of lower levels.
Looking ahead, we cannot say that either the bulls or the bears are in charge. We will need to look for clues and any break of the levels mentioned above could help us work out where the precious metal could be headed next.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Wallace Precious Metals The author has made every effort to ensure accuracy of information provided; however, neither Wallace Precious Metals 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. Wallace Precious Metals and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.