Silver Analysis July 2015 (D)
Created on Sunday, 28 June 2015 02:44
Written by Austin Galt
Silver was tracking as expected since the June 2015 report putting in a low at $15.80. However, as outlined in an email since that low, the potential of price cracking to new lows was mentioned. This has now occurred so we now turn our attention to determining where the next low will be.
SILVER DAILY CHART
I have drawn a horizontal line which is support that stems from the March 2015 low at $15.27. I expect price to test this support and while the low may be here I personally favour price cracking lower.
I have added Fibonacci retracement levels and this support level is just above the 76.4% level at $15.18 so it certainly has potential to hold price. However, I suspect price will break down below this level and even challenge the 88.6% level which stands at $14.65. That may be a touch far though.
Silver can be quite volatile and especially so around an announcement such as the Greek debt fiasco which is set for the end of June.
Normally, I use a Fibonacci Fan but couldn’t see any target angles I liked so I brought in the Dynamic Gann Fan which looks to already have some nice symmetry with price. Price turning back up at the support line would also be at the 1x4 angle at the start of July while the 1x8 angle looks to be just above the 88.6% retracement level and it would be no surprise to see price spike down there before turning back up. That’s what I favour but time will tell.
Both the RSI and Stochastic indicators looks set to throw up a bullish divergence if price makes a new low.
Summing up, I am looking for a low in early July after which a big bear rally should ensue with price trading up to price targets outlined in previous analysis.