BLOG WILL BE SHORT AND SWEET UNTIL MONDAY.
Below image is 1m chart on the silver market at lunch time. Notice how fibonacci plays this by the book so well
BREAKING NEWS: MARGIN HIKE ON GOLD REUTERS NEWS STORY
Click on the image to enlarge it
These Qday charts show us two different fibonacci points with the lowest lows we have at $32.32 as well as the current level $37.02. The current level tells us that $39.62 is a must hold for the breakout from the $37 mark to be legit. Therefore it is conducting it's test now. The second fibonacci point from the $32.32 levels tells us we hit the first fib level keeping the trend bullish. That mark is $39.23 and the silver price action traded under this level for only a couple of minutes making it a perfect hit. This number is the logarithmic version and would make a calculated wager that only 5-10% of people use this over linear. The linear number was $39.67 and therefore the log defeated the linear. Some people think that these numbers work because everybody sees these numbers and not many seen this one including myself. When the price action dropped large today I thought to myself that i was missing a fibonacci mark and the 32/50 is the prime one with the 37/44 the shorter term. The one in between this is 32/44 and therefore 32/50 is holding above 38.2% ($38.11) and thus neutral. The bottom rally from the April lows has us cautiously bullish and the other one is looking to become bearish in a neutral state. All of this is within' the more longer term fibonacci marks of 17/50, 8/50 and 4/50 which has us very bullish for good reason. The five day moving average's first test of the rising 5 MA was a sudden failure and thus we are in an intermediate term bear market until the trend changes.