Silver must hold this support level for a chance of a recovery

New York (Aug 17)  Silver has been edging lower in recent weeks and found support at $23/oz after hitting a low of $22.29/oz on 9th August. Although it has industrial uses and could be considered very important for solar power and clean energy the chart structure could be considered more bearish than gold. The major difference is the fact that gold got way closer to the consolidation low, while silver managed to keep a better distance.

Back to the silver daily chart below, the $23/oz area looks to be very important now. On this chart alone there are four shadows (wicks) showing firm rejections of the price point. Having said that the price is away from the peak of the composite volume profile area at $26.09/oz. This will be a big area to overcome for the bulls but the price will have to reach the zone first.

On the downside, the main support level is still the green horizontal line at $21.81/oz. As long as this level holds there is still hope for the bulls that the $26/oz area can be retaken. Before that, the trendline marked in grey will need to be broken and there may be some resistance at $25/oz.

KitcoNews