Silver has been looking up but there are some hurdles

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(Kitco News) - Now that we had some kind of decent recovery in the silver priceit will be important to look at retracement levels and potential resistancezones. The support levels look important because the price looks to havestalled at the black horizontal line at the previous wave high of $24.94/oz.Since the orange channel structure breakout, there has not been a meaningfulretracement and it does look like this could be the perfect opportunity forthat move to take place.

If that is not the case, the 200 period daily simple movingaverage is very close by and could be a sticky point as it has been in the paston a few occasions. Elsewhere the red horizontal line is the volume point ofcontrol (VPOC) has been a magnet for the price. It seems almostinevitable.

Having said all the above, the price is clearly in a massiveconsolidation zone. The low of $21.41/oz and the high of $30.25/oz are the twomain areas that the price that has been capped between the zone for over a yearnow. Until $24.94/oz is broken the price is still making lower lows and lowerhighs and this means the consolidation low is still vulnerable in themedium-long term.

By Rajan Dhall

For Kitco News

Follow rajfx10rdhall@kitco.comwww.kitco.com Disclaimer: The views 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 accuracy of information provided; however, neither Kitco Metals Inc. 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. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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