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(Kitco News) – Looking at the 4-hour silver futures chart, it appears that the market favors short sideways trades as a further decline was made in the European session. The price is now just over 1% lower and is testing $ 23.50 / oz at the time of writing.
The next bank of support is in the green zone, at around $ 23.38 / oz. This area has been well used in the past, especially on August 27th, as the price has gone up. Below that is the consolidation low at $ 22.83 / oz and the main low on the chart at $ 22.29 / oz.
Another bearish signal is that the price is trading below the volume control point (VPOC). this is where most of the contracts were traded on the chart and it could tip the balance in favor of shorts. This means the price is lower than the most traded area. The next payout on the highest timeframes is much lower, close to $ 18 / oz.
Overall, since the price broke the purple trendline and went down, there have been some lower ups and downs. The next low is at $ 23.36 / oz and if there is to be a lower breakout from there the bears could stay in charge a bit longer.
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not a solicitation to effect an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.