Silver could be forming a strong base here
(Kitco News) - Looking at the silver chart (daily) post FOMC, the market seems tohave defended the $23.00/oz level quite firmly. This does not mean that it isnot under threat but an inverse head and shoulders formation is forming withthe neckline resistance at the $24.95 area. This is the level the bulls need toattack to assert any dominance on this market.
Elsewhere on the chart, there is a rejection of the 50% Fibonacciretracement area. Elliott Wave theorists could be looking for a bounce between76.4% and 61.8% but the classic rules suggest any higher low can be valid. Theorange shaded area is still strong support as it is at the psychological numberand it is a low volume node on the volume profile indicator.
On the upside, there are two key areas in the medium term. Firstis the volume point of control at the red horizontal line. Silver has beenstuck here for a while now and a clean break and hold above the level would bea good coup for the bulls. Beyond that, the wave high at $24.94/oz would mean aconsolidation break out and this would show some strong intent from thebuyers.
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