Can I ask why price dropped from 26,200, now shuld I wait for price going up??
Thanks an advance
I made a mistake didn't close my Long positions on 26,200.
To gain we need a lot of time and to drop 1 min like this morning.
avemex
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@bos711, The whole chart is the weekly so long term. there will be short term corrections. currently the price was bouncing mildly from the 0.236 fib (the smaller one in the chart) this was expected as profit taking at 26 dollars was taking place. this level is also major resistance as it was tested on the weekly 4 times as support in 2011 and 2012.
if the current bounce holds above that fib level and goes up then we should continue to ~30 dollars which is 0.5 fib in the longer term. there is also a probability for this correcting further i see a buy zone between 20 and 22 dollars if we enter that scenario. if 26 dollars breaks to the upside with either the next test or the test after, we are going for 30 dollars (medium resistance) and 35 dollars (strong resistance).
i see a high chance of silver going parabolic after breaking 35 dollars. not much resistance to the upside.
but as always. technical analysis is just a game of probabilities. nothing is certain.
bos711
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@avemex, Ok thank a lot for an excellent explanation , let see how its going to go.
avemex
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@bos711, you are welcome the silver chart is a perfect fit for Fibonacci levels. not many charts following this so clearly. let's see if it continues to do so.
Thanks an advance
I made a mistake didn't close my Long positions on 26,200.
To gain we need a lot of time and to drop 1 min like this morning.