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(Wallace Refiners) – Silver futures are hovering near their value area on the volume profile chart at the moment. At this current distribution, it is interesting at the price of silver has held up so well vs the price of gold. (4-hour chart analysis)
If there is to be any pullback in the USD rally silver could be the one to watch and this chart suggests a break of the orange resistance level at $27.80/oz could indicate a move towards the high is on the cards.
There is a chart pattern to look out for too. A break of the rising wedge formation could give us a clue to the future path of the precious metal but there seems to be more traffic and support on the downside.
The next support level is the bottom of the channel but there is another support at the green horizontal line near $25.92/oz. Beyond that, there is a purple trendline that comes from the higher timeframes to keep an eye on.
At the moment a lower high has been made but selling volume does remain pretty weak. Keep an eye out for the next resistance and a break of the pattern to the upside as if this does occur it might just indicate a move to the highs is back on.
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