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(Kitco News) – Silver saw a decent price rise of 0.89% in European and Asian sessions, despite the existence of a UK bank holiday for the Queen’s Jubilee. The gray metal is now trading above the $22/oz level and may attack resistance levels above the current price zone. The move was a move with decent momentum like the spike in volume seen yesterday. This move took the price through the VPOC (marked in red) and although the price went back down, it broke the level again in the last 10 hours or so.
Looking more closely at the hourly chart below, there is a level that trades may need to pay attention to. The price is moving towards a high volume node right now near $22.80/oz, but just above there is a resistance zone at the purple level at $22.18/oz. If this is crossed, the main resistance in this time frame is at the high of $22.47/oz.
In contrast, there are three main levels to watch this afternoon (or the US session). The first is the VPOC area shaded in red. This is the area where most contracts have changed hands and it stands at $21.86/oz. Next is a consolidation low from May 20 at $21.67/oz. This price has bounced in this area at least 4 times on this chart alone. The last is the support just below $21.50/oz and this is the level the bears need to pull back to create a lower lower pattern. It seems safe for now as the bulls are in charge of the market during this intra-day period.
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.