Silver Price Consolidates Following Four-month Low

iNVEZZ.com reported that today silver has consolidated between $19.695 and $19.503 per ounce. Yesterday, the white metal was quite volatile, hitting a four-month low of $18.929 and later reaching a 10-day high of $19.90.

As quoted in the market news:

The precious metal yesterday formed a bullish engulfing daily candle, which is also known by traders as an outside reversal day. In general, if the outside reversal occurs at a support level, it is viewed as a strong bullish signal.

‘The intraday, four-month low for silver was retraced and the close at a 7-session high – above the 9-day MA ($19.62) – highlights the ongoing moderation in downside risk’, suggest technical strategists at ScotiaMocatta. They note that a bullish daily candle was formed yesterday, which is similar to that observed on the gold chart. ‘The trendline (on a closing basis) from the January-April lows suggests near term support at $19.45.’

Click here to read the full iNVEZZ.com report.