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Silver Could Be Creating Large Reversal Pattern

ByChris Kimble
Published 08/14/2020, 12:32 PM
Updated 07/09/2023, 06:31 AM

Could silver prices from 30 years ago be influencing price action this month? Joe Friday suggests it is possible.

This chart looks at silver futures on a monthly basis over the past 40 years. Fibonacci levels were applied to the 1980 highs ($50) and 1991 lows ($.350) in silver.

The 50% retracement levels of the 1980 high/1991 low came into play as support for a few months at each (1). Once this support broke, Silver fell another 50%.

The impressive rally over the past eight weeks has silver testing the 50% retracement level as potential resistance this month at (2).

At mid-month, silver could be creating a large bearish reversal pattern at a 30-year Fibonacci level.

The month is far from over. This price level should become very important at the end of the month for silver bulls and bears!

Keep a close eye on this long-term Fibonacci level at month's end.

Latest comments

Where I can find the yearly chart?
Yes, you're truly right. Based on recent history (charts), it won't take long to test last time lows ($11 area). Since it is possible to break below $11, two are the questions: 1) How long will last the bear market? 2) What will be the lowest lows?
How about you go do some research & write something based on FACTS, not speculative opinion that has no relevance to our current time or market conditions or financial circumstances?  Start by going to the Comex Silver Futures chart & research trading volume the past few weeks.  Last Wednesday about 400,000 silver contracts were traded in ONE day, that's about 2 BILLION ounces, nearly 3X annual global mining production.  Let that sink in.
Shill
Nothing of any value in this article, just another shill casting doubt to affect investor sentiment.
maybe you should consider the fed balance sheet and the fact we it has increased as much in the last 5 months, as it had done in the last 12 years! Which, in itself, was already the largest printing press operation in American history. Yes, silver will have a big dip after the election, and then it will shoot to the moon again, because regardless of who the next president is, they're going to pass record stimulus that will make this draw dropping round of easy money seem tame in comparison. The only way silver could see a 50% reversal this year is if the bulls pushed it to the holy grail of $50 plus an oz by late October. And even if it fell that hard it would just set up the next historic moon shot.
I see cup and handle forming instead
silver going to crash again, sub 10 this time, probably never recovers
Must be short from 13
good.... I am buying further in....
alert today alive tomorrow
https://invst.ly/rt9hw something like this?...  SIlver to   - $25.8 Interesting, but  chartist patterns are like astral chart, lets see if the planets and the stars aligned to this blo*ddy fate.
I just reproduced your chart and you a valid point. In march 2008 it pierced the 61.8 for a second.. then as everyone was frantic for money and selling everything supply clearly outstripped demand it fell 58.5%. Clearly here the circumstances are different but the laws of supply and demand are the same. you're making me want to sell my bullion. If resistance isnt held at the 50 I will. Thank you for your article.
Upward PT to 31-35 before 50-60% correction to 19.8-21 during a market correction. Followed a trip to $92. This is my prediction.
Chris, I am in complete agreement with you on this one.  I didn't think anyone else was looking and given the comments back to you and the hysteria over anything PM related in ALL media formats, it is true that human nature never changes, "Just the facts".  Yesterday I went short from $27.09 and 3 other levels up to $27.80 and unleashed a severe outbreak of haters, covered today at 26.09, 26.27 and 26.36 but again stalking a larger longer term position.  My work which also has the levels you depict indicates the top is in on the last push up to near $30.  I guess we'll find out soon enough.  Good luck to you either way, long or short.
It will reverse allright, in 2 to 3 years ! Hahahaha
A 40-year cup and handle pattern is not a reversal pattern.
Hi David, the handle does not appears to be bigger than 1/3 maximal cup height. Cup and handle is powerful for breakouts, but not 100% reliable. I am long bullish in Silver but this article is scaring many people.What do you think?
Silver spot buy at above 26.32 ,target 27.15 ,stop loss 25.69
So we can expect silver to come below $20 quickly.
Not quickly, i think it has another leg higher before a massive correction when the market falls once the election is decided
it will stay bumpy but we wont see even below 24, reason: gold/silver ratio. As gold gets more expensive, silver will be the undepriced alternative to store value- silver will reach 49 by election day
35 cents? Really? Is that even possible in 2020?
It’s typo $3.50
Still waiting for the cup and handle pattern to form as earlier predicted.
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