Silver Analysis April 2015 (D,W,M)
Created on Wednesday, 01 April 2015 02:04
Written by Austin Galt
Silver pulled all the way back to the expected pullback low level so now let’s see what is expected going forward starting with the daily chart.
SILVER DAILY CHART
We can see the 76.4% Fibonacci retracement level and the 88.6% Fibonacci Fan angle saw in the recent low. Nice.
The Relative Strength Indicator (RSI) showed a strong reading at the recent price high which augers well for price trading even higher after this little pullback is finished.
The Stochastic indicator made a recent bearish crossover while the Moving Average Convergence Divergence (MACD) indicator looks to be making one now so more downside looks likely.
I have added a Fibonacci Fan from the March 2015 low to March 2015 high and I favour a higher low to be set near the 88.6% angle which looks to be around the US$15.70 level in the first week of April.
SILVER WEEKLY CHART
The RSI showed a triple bullish divergence at the December 2014 low and now looks to be generally trending up although it is somewhat in no man’s land currently.
The Stochastic and MACD indicators are both bullish with the blue line above the red line.
I have added Fibonacci retracement levels of the move down from November 2013 high to December 2014 low and I expect a rally up to around the 61.8% level at US$19.62 and perhaps a touch higher. The 76.4% level at US$20.91 has to be kept in mind also.
I have also added a Fibonacci Fan and I am looking for the rally high to be around resistance from 76.4% angle which looks to be around the US$20 mark in mid June.
SILVER MONTHLY CHART
The RSI showed a bullish divergence on the RSI at the recent low while the Stochastic and MACD indicators both have a bullish bias with the blue line above the red line.
The Parabolic Stop and Reverse (PSAR) indicator has a bullish bias after price busted the dots on the upside in March.
The Bollinger bands show the recent low traded below the lower band indicating a solid low. I am looking for the final rally high to be up near the upper band.
Once that rally high is in place the downtrend should resume with full effect.