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Silver Could Be Creating Large Reversal Pattern

Published 08/14/2020, 12:32 PM

Could silver prices from 30 years ago be influencing price action this month? Joe Friday suggests it is possible.

This chart looks at silver futures on a monthly basis over the past 40 years. Fibonacci levels were applied to the 1980 highs ($50) and 1991 lows ($.350) in silver.

The 50% retracement levels of the 1980 high/1991 low came into play as support for a few months at each (1). Once this support broke, Silver fell another 50%.

The impressive rally over the past eight weeks has silver testing the 50% retracement level as potential resistance this month at (2).

At mid-month, silver could be creating a large bearish reversal pattern at a 30-year Fibonacci level.

The month is far from over. This price level should become very important at the end of the month for silver bulls and bears!

Keep a close eye on this long-term Fibonacci level at month's end.

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Latest comments

balbir singhAug 18, 2020, 19:21
Where I can find the yearly chart?
Gerti KaliciAug 16, 2020, 16:58
Yes, you're truly right. Based on recent history (charts), it won't take long to test last time lows ($11 area). Since it is possible to break below $11, two are the questions: 1) How long will last the bear market? 2) What will be the lowest lows?
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