There’s been quite a bit of volatility with Silver prices. After a nice rally into early 2015, the past 2 weeks has ushered in some price weakness. And this begs the question: Do lower prices loom for Silver in 2015?
Back in August 2014, I wrote an article projecting lower Silver prices. In that post, I used my custom Fibonacci method to calculate probable Silver price targets over the short and long term. The short-term targets were both hit and closed.
It’s the longer term target that deserves our attention here. My projected target was 14.095. A nice call, considering that Silver futures were trading at 19.395. That represented a pullback of 27.3 percent and seemed somewhat of a stretch. But was it a stretch? Not so much.
In the chart below, you can see the target of 14.095 was missed by 6 cents with a current low being put in at 14.155.
Silver Prices – 1 Year Futures Chart
Now let’s move in for a tighter view and see if the 14.095 target still looks valid. In the below chart, you’ll see a daily, short term target of 18.42 has been hit and so far rejected 4 times. On Friday, February 6th, 2015 price pulled back to and bounced off of the support area of 16.69 – 16.41. Watch these two levels on silver futures. A close below 16.41 will give us a new short-term downside target.
Silver Prices – Near-Term Futures Chart
Silver futures retreat from the March 2014 high to the December 2014 low was (36.18%).
I still maintain my call for lower silver prices. Thanks for reading and remember to always use a stop when trading.
Follow Dave on Twitter: @TheFibDoctor
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.