Silver is showing signs of life

New York (Nov 12)  Silver has pulled back 1.23% in the European session as the market seems to be taking stock following the recent moves higher in precious metals. The price is now at the $25/oz psychological level and investors and traders need to decide with the price will hold above the all-important zone into the end of the week.

Looking at the technicals, the price has firmly now made a higher high, higher low formation which is a great sign for the bulls. The issue now is the high volume node (HVN) and volume point of control (VPOC) resistance zones marked on the chart. The red horizontal line seems like the strong area as it has had more touches and a higher accumulation of volume. Having said that, the signs look good for a potential test and upside levels should be in focus.

On the downside, the trendline in grey would be in focus. If broken that could be a clue that the bulls have run out of momentum. Elsewhere, there are some support areas marked out. The one in green at $24/oz seems to be the strongest based on the number of interactions and the bounce just before April. Beyond that, the $23/oz area is the right shoulder of a head and shoulders reversal pattern and this could provide some support.

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