Silver showing signs of a technical recovery
(Kitco News) - Silver has been looking bid over the last few session but theprecious metal is heading to a tricky resistance zone. The area marked by thegreen shaded zone has been used on three previous occasions on this daily chartalone and it also resides at the psychological $24/oz level. Now the orangechannel lines are broken the question is if the trend is going to change?.
From a technical point of view, the price still has not made ahigher low higher high formation. This means we cannot call this a trend changejust yet but the signs are good. Another feature on the chart is the 200-daysimple moving average (black). If the price manages to break that level itwould also provide another clue that the market is looking to move back into anuptrend. Just beyond that, the red horizontal line is the volume point ofcontrol. It has been a big congestion area for the price.
All in all, this is by no means a confirmed trend change but thesigns are looking good at the moment. There is every chance the price could goback and retest the channel structure. If it does a break of the $24/oz area iskey as it would make a higher low higher high. Then the rest of the resistancelevels will be in focus.
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