For anyone intrested, here is the Fibonacci retracement chart for Silver. (in $USD) We have already broken "Short Term" 61.80% support of $45.65. I would therefore be very supprised if it did not drop to just above the "Short Term" 38.20% support of $43.28. If it breaks $43.28, expect it to reach the short term low of around $39.69 ($40 or so). If it breaks $39.69, expect to see it reach the Intermediate low of $36.42. Might give some of you some ideas regarding when to buy. I wont be buying more physical unless we see $40 or lower. But at least this will give you guys/gals some ideas for entry points . High Low 38.20% 61.80% 138.20% 161.80% 200.00% Short Term $49.78 $39.69 $43.28 $45.65 $54.28 $57.26 $62.44 Intermediate $49.78 $36.42 $41.04 $44.18 $56.09 $60.38 $68.04 Mid-1 $49.78 $33.59 $39.04 $42.83 $57.85 $63.48 $73.77 Mid-2 $49.78 $26.36 $33.61 $39.05 $63.46 $73.74 $94.01 Mid-3 $49.78 $17.36 $25.96 $33.29 $74.44 $95.45 $142.74 Long-1 $49.78 $8.35 $16.51 $25.17 $98.46 $150.05 $296.77 Long-2 $52.50 $4.00 $10.69 $19.64 $140.37 $257.72 $689.06
Firstly the 'short term' has been based on a period of very low liquidity (volume). So personally i will ignore this. Secondly to ignore the above i would also ignore the price points reached during that period of low liquidity. If i was to make a decision, i would wait until markets resume full trading later this week (or better yet next week) and then draw my conclusions from the information provided then. But thats just me, i prefer to be more conservative.
Hey Merchant, cheers for the input. However, so far the fib support resistance points are been pretty spot on.. You can draw a straigh line through $45.65 (short term 61.80% retracement) and see a clear support/resistance point. I am just basing this on high's and low's, which usually work pretty well. But agreed, there are so many different ways to skin a cat ..
Here is a great vid from endlessmountain regarding current Fib Support / Resistance.. if people are interested.. http://www.youtube.com/watch?v=U6NtlrtGT8o
