Silver closing in on $25/$26 key Fibonacci Level
Silver ended the Friday session in the area of $27.50 as the sellers continue to keep this market lower. This is the first significant retracement during this silver rally and as long as we stay above $25/$26 then we will remain bullish. Because it is below $28.00 it is no longer super bullish as it has retraced more than 23.6% of this rally. Intermediate term this market is in a down trend with a declining 5, 10 an 20 day moving average and below a flat 50 day average. This market will not keep going lower and at some point the buyers will pump this market back higher. Of course "MY GUESS" for that "some point" is around the 25/26 level. It's an educated guess because this is the fibonacci retracement of 38.2%. The indicator on the daily chart "Direction from the 50 day low" is in a downtrend and I will be keeping my eyes on this one to see when it will be giving signals to get back in the market. I used this indicator back in August and it stated that a breakout above $18.60 to go long and wow that was a great buying opportunity. What you need to see on that indicator is for that trend to reverse. You want to establish a higher low and a higher high and then you are ready to go. More on that as we move forward later on in the next few days and weeks
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