Silver price is testing a strong support zone

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(Kitco News) – Silver is down about 2% in Tuesday’s European session. The gray metal has had a pretty decent run lately as it surmounted the $27/oz hand but after last week the price has bounced back to $24/$80/oz today. With tensions between Russia and Ukraine high, all major metals were bid on. Now there appears to have been a retracement across the board as platinum, palladium and gold are all down. There are talks between Russia and Ukraine today and the forthcoming Fed meeting this week.

Taking a closer look at the daily silver futures chart below, the price is moving towards a major confluence area. The down sloping trendline that previously broke to the upside is about to be tested again. There is also the green area that was near a previous high and low volume consolidation wave node on the volume profile indicator. These three factors mean that the $24.60/oz area could be sticky for the bears and could offer some support as the market heads into the US Open.

If the price falls below the zone, the middle of the next distribution could be next in line. The black line at $23.39/oz looks firm as the price has stalled there four times on this chart alone. Then the main area is the consolidation low on the chart in the blue shaded area. The price is quite far from this zone and the bulls seem to be in charge for now as the price is still making higher highs and higher low price waves.

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