(Kitco News) – Silver has now moved into a lower distribution and looks like it could try and break the previous wave low to move into the abyss. Looking at the weekly chart below, the price looks like it could test the previous wave low at $20.46/oz. The price has been now moving lower in a pretty firm fashion since 18th April and there was a brief retracement in and around 6th June but since then the price has moved back toward the lows.
If the price does break the support zone the next level on the way down is at the blue line near $18.35/oz. Ahead of that, the $20/oz and $19/oz psychological zone are also in the way. This current consolidation has been intact for a long time and any break seems like it could be a big deal. The consolidation zone started back in July 2020 when the price was on its way to the high of $29.86/oz. This means that if the price does break the low it would be the lowest silver has traded since July 2020, nearly two years.
