Silver holds its gains from the European session

NEW YORK (Apr 5)  Silver  has had a decent session during European hours the price is currently 0.37% higher on the day. On the 4-hour futures chart below there has been a retracement after the bull run between February to the first week of March. The correction has been around 12.5% but there looks like a base formation at the moment.

looking closer at the technicals on the chart there are some levels to look out for. The first is on the downside at the purple support line. If the price breaks the support it would mean a new lower low wave and potentially a continuation of the downtrend. A close above the orange shaded area would invalidate this and a break of the volume point of control (VPOC) could be significant for the bulls. The red shaded resistance zone is a good target for the bulls as a break could confirm a resumption in the uptrend. There is also a grey downtrend line to watch for a break. If that does happen it could be another indication that the uptrend is resuming.

For now, the price is consolidating, there are no consecutive higher highs and higher lows or vice versa. A break of the VPOC could change this and it will be interesting to see how the price reacts when the U.S. traders come to market.

KITCO