Silver price appears to be heading towards a large support area
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(Kitco News) – Silver has now shifted to a lower distribution and it looks like it might be trying to break the previous wave to head into the abyss. Looking at the weekly chart below, the price looks like it could test the low from the previous wave at $20.46/oz. The price is now declining quite firmly since April 18th and there was a brief retracement on and around June 6th, but since then the price has moved back towards the lows.
If the price breaks the support zone, the next level down is at the blue line near $18.35/oz. Before that, the psychological area of $20/oz and $19/oz is also on the way. This current consolidation has been intact for a long time and any breakout seems like a big deal. The consolidation zone started in July 2020 when the price was on its way to the high of $29.86/oz. This means that if the price breaks the low, it would be the lowest silver traded since July 2020, which is nearly two years.
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