Let’s start with a long term view of silver. From the low of $3.92 in 1993 to the high of $49.82 in 2011, price increased by a massive +1170.91% (a +12 bagger) with +493.09% of the move occurring in just 30 months from October, 2008 to April, 2011.
In the chart below, you can see there were 2 Fibonacci support levels of 26.87 and 21.455. Price was able to hold the 1st support level for 18 months before dropping down to the 2nd support level, which could only hold 2 months.
Now let’s start drilling down and get a better idea of where silver may be headed.Â We’ll start with a 10 year, monthly chart with the new Fibonacci draw that was created after price failed to hold 21.455.
In the chart below, you’ll see 2 resistance levels; 26.805 and 28.845 and a target of 14.095.
Now, let’s drill down to some shorter time frames. In the 6 month, weekly chart below, using my Fibonacci drawing method, I’ve derived a target of 19.355 which was hit and held for the week of August 18th, 2014. The overhead resistance levels are 19.83 and 19.905.
Again, using my Fibonacci drawing method on a 1 year, daily chart, we get a target of 19.205 with resistance at 20.14 and 20.29. Considering this daily target of 19.205 and the weekly target of 19.355 I would say $19 and change is the number that should be monitored closely for more weakness.
I’ll continue to monitor this and update the chart as needed.
This post originally appeared on See It Market.