Silver could be forming a strong base here

New York (Nov 4)  Looking at the silver chart (daily) post FOMC, the market seems to have defended the $23.00/oz level quite firmly. This does not mean that it is not under threat but an inverse head and shoulders formation is forming with the neckline resistance at the $24.95 area. This is the level the bulls need to attack to assert any dominance on this market.

Elsewhere on the chart, there is a rejection of the 50% Fibonacci retracement area. Elliott Wave theorists could be looking for a bounce between 76.4% and 61.8% but the classic rules suggest any higher low can be valid. The orange shaded area is still strong support as it is at the psychological number and it is a low volume node on the volume profile indicator.

On the upside, there are two key areas in the medium term. First is the volume point of control at the red horizontal line. Silver has been stuck here for a while now and a clean break and hold above the level would be a good coup for the bulls. Beyond that, the wave high at $24.94/oz would mean a consolidation break out and this would show some strong intent from the buyers.

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