Silver resistance levels are in focus

NEW YORK (Mar 8)  The silver price rise continues to rise as precious metals catch a serious bid. So far in the session prices are up around 2.82% and conclusively above $26.44/oz. Since the downward sloping trendline broke to the upside there has been no stopping the bulls.

On Tuesday, the price has hit a resistance zone at the low volume node on the volume profile marked by the red shaded area just below $27/oz. Above that, the peak of the next distribution area is at the purple shaded zone near $27.80/oz. The good news for the bulls is the fact that the market seems to be behind the move. The volume histogram at the bottom of the chart shows the market participation increasing as the price rises.

On the downside, the next support is at the previous wave high ($25.47/oz). This area is also the peak of the distribution lower down and was pretty sticky in the past. The trendline that previously broke could also be another area of support and should be taken note of. For now, the bulls are still in charge of the market and upside levels are in focus.

KITCO