Silver traders saw a bounce off 14.70 Monday. Silver was falling heading into the NYMEX open, and in a reversal of recent patterns, it actually headed up instead of down. So the 14.60 low set on May 2 remains the current near-term low. The short-term chart still shows silver in a downtrend using common technical analysis – but what about the more complex methods?
Your friendly Gold Enthusiast will weigh in with his thoughts later this week. Today we feature a look at silver prices using Fibonacci analysis, which may give some insight into the current situation and the coming months. Like Elliot Wave, Fibonnaci uses a long timeframe to look at “waves” in the price action, on the theory that while history may not exactly repeat itself, it often rhymes.