Silver intraday technical analysis

New York (Feb 16) Silver has retraced somewhat from its recent high of $24/oz and now has found itself between two peak distribution points on the 1-hour chart below. The grey metal is holding at $23.50/oz but is 0.59% up on the session leading into the U.S. open. The support kicked in just ahead of $23/oz where there was a prominent high volume node on the volume profile indicator (right-hand side).

Looking ahead to the rest of the session the green support could be important on the downside. If the market does find itself under pressure it looks like there is some support building at the aforementioned zone. Below that, the blue area looks slightly stronger ($22.85/oz). This area was the previous consolidation high and when the price broke through the area it was also used as a support zone pretty recently (11th Feb)

It's hard to say if the bulls or the bears are in control of this market from an intraday perspective but if the price moved above the red zone resistance at $23.83/oz that would be a good sign for the bulls. We have the small matter of the FOMC tonight and it is then we could get more clarity on how aggressive any monetary policy tightening could be. This could have an effect of the precious metal so be aware.

KITCO