Silver Price Analysis
Commodities / Gold and Silver 2018 Apr 30, 2018 - 09:15 AM GMTBy: Austin_Galt
Latest Price – $16.47
Pattern – price looks to have been in a corrective pattern ever since the impulsive move up off the December 2015 low culminating in the July 2016 high. I expect this corrective phase is in its very final stages.
Weekly Chart
Bollinger Bands – price has been toing and froing between the upper and lower bands which is typical of corrective action. Price is now back at the middle band and this time I doubt price will continue on down to the lower band. Instead, I expect support to kick in here and send back up and beyond to commence the next upleg of this rally that began in December 2015.
Trend lines – price has been finding support and resistance at each trend line and is now approaching the apex. A big move looks imminent, and I favour that move to be up.
Fibonacci – the low of this corrective phase was around support from the 76.4% level which is a top spot to look for a corrective low.
Moving averages – now in a bullish position with the 100 week moving average (red) above the 200 week moving average (black).
RSI – last week’s move down saw this indicator move into weak territory but I am not reading much into that. More interesting is that the previous low was unable to manage entering oversold territory while the previous high got into overbought territory which tells me price is looking stronger overall.
Monthly Chart
Pattern – I believe an ABC correction is at hand with points A and B already in place with price set to put on a powerful rally into a point C high. After that I expect the overall downtrend to resume.
Bollinger Bands – these bands have narrowed considerable suggesting a big move in one direction is likely approaching. I am betting that direction is up.
Fibonacci – after finding support at the 23.6% angle price has moved to the 38.2% angle where it resides currently. I am looking for a solid move higher now and one potential area to look for a rally high is the 61.8% angle. This angle intersects with the 38.2% retracement level of $27.46 around October 2018 so that is some potential timing for a rally high.
RSI – the low set in December 2015 coincided with four bearish divergences and since then this indicator got into overbought territory but has failed to get back into oversold territory implying inherent price strength despite the relatively low price.
Summing up – looking for an explosive rally to commence imminently with potential for price to rise over 50% from current levels in a relatively short space of time.
By Austin Galt
Austin Galt has previously worked as a stockbroker and investment banker while studying technical analysis for over two decades. He is also the author of the book White Night: A Colombian Odyssey
Email - info@thevoodooanalyst.com
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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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