As I explained in my analysis of earlier in the week, the key technical level on the daily chart was in the $16.90 per ounce level and one which might provide some temporary support for the metal in the short term. That support only extended for one day, before it was duly breached with heavy and sustained selling on both Wednesday and Thursday this week, before early trading today ahead of the NFP release has seen a minor recovery as silver currently trades at $16.46 per ounce at the time of writing. More importantly, the move lower this week has been confirmed with rising volumes and sending a clear signal that price and volume are in agreement, and with little technical support now available below, and with a low volume node in the $16.20 per ounce area, the $16 per ounce price point is now under threat with a move to test the $15.87 per ounce area now likely.
The volume point of control continues to remain firmly anchored in the $18.10 per ounce region, and until the current price waterfall comes to a halt, will remain there until price agreement is reached in a new area with transacted volumes building and a fresh congestion zone developing accordingly.
By Anna Coulling