The silver price is testing a strong support zone

NEW YORK (Mar 15) Silver has dropped back around 2% on Tuesday in the European session. The grey metal has had a pretty decent run of late pushing past the $27/oz hand but after the last week, the price has moved back to $24/80/oz today. With tensions between Russia and Ukraine high all of the major metals caught a bid. Now it seems there has been a retracement across the board as platinum, palladium, and gold have all moved lower. There are talks between Russia and Ukraine today and the upcoming Fed meeting to consider this week.

Looking closer at the daily silver futures chart below, The price is moving towards a big confluence area. The downward-sloping trendline which was previously broken to the upside is about to be retested. There is also the green area which was a previous consolidation wave high and low volume node on the volume profile indicator close by. These three factors mean the $24.60/oz area could be sticky for the bears and might provide some support as the market heads into the U.S. open.

If the price does drop below the zone then the middle of the next distribution could be next up. The black line at $23.39/oz looks firm as the price has stalled there on four occasions on this chart alone. Then the main area is the consolidation low on the chart at the blue shaded area. The price is pretty far from that zone and the bulls still seem to be in charge for now as the price is still making higher high and higher low price waves.

KITCO