Silver bounced off a low price of $14.10 back in December of 2014. Has the silver price found support or not?
Bullion.Directory precious metals analysis 3 March, 2015
By Terry Kinder
Investor, Technical Analyst
While the silver price has seemed to be a little “springier” than the gold price as of late, it’s still unclear whether the price has found significant price support or not.
Pitchfan
The silver price has held thus far at the Pitchfan support level and at the over decade old support line
In December 2014 silver dropped to $14.10, bouncing off an important Pitchfan (a combination pitchfork, Gann Fan) support level. On the chart you can see several other important support and resistance levels, including an over 10-year old price support line which, thus far, has not been violated.
Fib Spirals
The Fib Spiral chart shows significant areas of support and resistance based on previous important pivot high and low prices
A similar story to the Pitchfan chart is told by the chart of silver Fib Spirals. Current Fib Spiral support is just below $15.00, so the silver price could fall quite a bit and still not break through support. To avoid too much visual clutter, only the very significant support and resistance levels were included on this chart. There are many resistance levels much closer to the current price, but they have been left off the chart for the moment. Should the silver price move higher, more will be added to the chart over time.
Phi Circles and Fib Spirals
Recently the Fib Spirals and Phi Circles have proven supportive to the silver price
Adding an overlay of Phi Circles to the Fib Spirals, indicates additional potential levels of support for the silver price, but at lower levels. At some point, we should expect silver to test its Fib Spiral support level, and potentially support at the nearest Phi Circle as well.
Silver, in December of last year, did find support at an important Fib Spiral support level. It’s still a bit early at this point to say that the silver price has found its ultimate support level. It is encouraging, however, that silver has managed to hold above the December low.
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