Silver Technical Analysis: Not broken out just yet

New York (Feb 8)  Silver has moved 1% lower in the European session after a nice run since February 3rd. The price has not broken out of its current distribution area but if it manages to break higher in the afternoon there is a resistance at $23.25/oz (red zone). Beyond that, there is another zone in the green area. This was the consolidation low of the higher distribution. Between August 2020 to now the price has been in a strong consolidation pattern and at the moment the price is at the lower end. Any push higher from here would be met with lots of traffic with $24.11/oz being the most significant price level.

If the bulls fail to break out past the 0.382% then the lower support levels could be back in focus once again. The first point of call would be the previous wave high near the 23.6% Fibonacci retracement ($22.65/oz). The price has bounced off the zone a few times and this could mean it might be significant once again. Below this, the main support on the chart is the low at $21.98/oz. Any break of this area could spell trouble for the bulls as the next low on the higher timeframes is the main consolidation low at $21. 41/oz.

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