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(Kitco News) – Silver has had a decent run in the past few weeks but the grey metal is down 0.35% as we head into the U.S. market open. The price recently broke out of a wedge-type structure (marked in red) and found resistance just ahead of the 61.8% Fibonacci retracement zone. Looking ahead, the price may come back to test the wedge structure before continuing in its uptrend but the aforementioned 61.8% Fib zone looks like a strong bit of resistance.
This does look like a new higher low is being developed but just in case it is important to look at support levels on the downside too. The next major area of support could come in the psychological $20/oz area. This area has been a pretty sticky zone for the price and it could be once again if the bears get control of the market. Below that, there is a consolidation high close to $19.20/oz which might come into play. The current consolidation low stands at the orange line at $1955/oz.
For now, the bulls look like they are in charge and a break of the previous wave high at $20.73/oz is the level to watch.
For Kitco News
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