Silver has been looking up but there are some hurdles

New York (Oct 26)  Now that we had some kind of decent recovery in the silver price it will be important to look at retracement levels and potential resistance zones. The support levels look important because the price looks to have stalled 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 meaningful retracement and it does look like this could be the perfect opportunity for that move to take place.

If that is not the case, the 200 period daily simple moving average is very close by and could be a sticky point as it has been in the past on a few occasions. Elsewhere the red horizontal line is the volume point of control (VPOC) has been a magnet for the price. It seems almost inevitable.

Having said all the above, the price is clearly in a massive consolidation zone. The low of $21.41/oz and the high of $30.25/oz are the two main areas that the price that has been capped between the zone for over a year now. Until $24.94/oz is broken the price is still making lower lows and lower highs and this means the consolidation low is still vulnerable in the medium-long term.

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