Silver Update April 2015 (D)

Silver is already back to my target for low but I think there is lower to go. Let’s take a quick look using the daily chart.
 

SILVER DAILY CHART 

The target given in previous analysis was for price to come back to around US$15.70. Yesterday price hit US$15.73 and while a case can be made for a rally up from here I personally think there is still lower to go.
 
The PSAR indicator has a bearish bias with the dots above price.
 
The RSI is in oversold territory but there is still plenty of room to go lower and still set up a bullish divergence which is the scenario I favour.
 
The MACD is trending down with a bearish bias. Of course a big move up from here would change that picture but until that happens I prefer to have a bearish bias myself.
 
There looks to be a 5 point broadening low in play denoted by the number 1 to 5. That would require the point 5 low to be below the point 3 low which stands at US$15.27.
 
I have added Fibonacci retracement levels of the move up from December 2014 low to January 2015 high and while the recent low was right around the 76.4% level, I now favour the final low to be closer to the 88.6% level at US$14.89.
 
Also, while not shown, there is monthly PSAR support at US$14.31 this month while next month it will be around US$14.40 and I favour a more solid test of that support.
 
After the coming expected low, price should stage a big rally higher if my analysis is correct.
 

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Disclaimer

All information contained in this website 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. Put simply, it is JUST MY OPINION.

JoomShaper