Silver Update July 2015 (D)
Created on Wednesday, 08 July 2015 02:40
Written by Austin Galt
Silver has played out close to perfection as laid out in previous analysis with price putting in a low at $14.81. Let’s update briefly update things using the daily chart.
SILVER DAILY CHART
I’m keep this chart simple and uncluttered so we can clearly see the retracement levels that price honed in on.
I have drawn a Dynamic Gann Fan using the December 2014 low and May 2015 high for the 1x1 angle. This shows price pulled up just above support from the 1x8 angle which was the favoured scenario outlined in previous analysis.
I have also drawn a Fibonacci Fan from the December 2014 low to March 2015 high and this shows the low right at support from the 88.6% angle. Nice.
I have also added Fibonacci retracement levels of the move up from December 2014 low to January 2015 high and the preference wad for price to put In a low between the 76.4% angle at $15.18 and the 88.6% level at 14.65. Nice again.
The low was accompanied by bullish divergences in both RSI and Stochastic indicator which I always like to see at solid lows.
Finally, this low was a capitulation style low which is a common setup for low. This increases bearishness to the maximum right before price turns back up and begins a new uptrend.
I expect the low to be tested fully before an uptrend does take place and we can once again try to nail down likely price targets for the rally high in the next analysis.