Silver has not yet recovered from the post FOMC drop
New York (Jun 23) Silver still has not recovered from the post FOMC sell-off last week that cause the short-term spike in rates (front of the curve). Silver is very different from gold. It still has many industrial uses and although it can be classified as a safe haven due to its relationship with gold but it must be treated slightly differently.
The chart structure of the two is very different at the moment. The price of silver is in a firm consolidation phase between $30.35 and $21.81/oz. Right now the price is in the middle of that consolidation at $25.97/oz battling with the psychological $26/oz handle. In terms of the volume profile, the key area is slightly higher up at $27.45/oz but it has to be said further down the is a distribution peak at $26/oz and $24.28/oz respectively. These are all sticky areas to keep a close eye on.
In terms of technical support, the price move lower stopped at $25.65/oz which was a resistance zone from 12th October 2020. A break below this could be significant as it opens the price up for a move to the next level of support at $24.81/oz.
All in all the market is still in a sideways trend. The bears are slightly in control as the volume is currently much higher on the moves lower. Having said that the volume on the 18th June candle was strong so there seems to be some backing when the price does move down. If the trendline breaks then that could be an indication that the price could move to the consolidation low but there is lots of support and space until that point. On the topside, the VPOC area on the chart is the next main resistance to watch.
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