Silver broke on December 18. It recovered a Fibonacci quantity on January 9, 2025, precisely after 13 buying and selling days. Silver’s failed collapse is inherently bullish.
On this article we concentrate on the silver card. We mix time and value evaluation.
In doing so, we discover that silver’s latest weak spot coincided with a failed collapse, which was declared invalid on Thursday, January 9, 2025.
RELATED – Silver Forecast 2025 and 2026
That is probably nice information for silver buyers, as silver’s failed collapse has the legacy of resulting in promoting exhaustion by creating an inflection level.
The Failed Collapse of Silver – Value
We have a look at the worth axis of the silver chart.
- The 2024 rising trendline was breached on December 18, 2024.
- The FOMC press conference mixed with the decision to reduce interest rates pushed the silver value down sharply.
- This broke the rising development line.
Trying strictly at value, silver is now in a long-term consolidation, beneath the uptrend (nonetheless flat).
RELATED – When Precisely Will Silver Attain $50 an Ounce?
Nonetheless, on January 9, 2025, silver regained the rising trendline. For now, the December breakdown has been declared invalid.
The Failed Collapse of Silver – Time
Does the failed failure matter?
That is the case, particularly and particularly as a result of silver regained its ascending trendline proper on day #13, a Fibonacci quantity.
This really means, as a basic precept, that the invalidation of the fault has been confirmed.
If a disturbance (or breakout) turns into invalid on a day that coincides with a quantity within the Fibonacci sequence, this strengthens the invalidation case.
With this in thoughts, we all know the next:
- Silver violated its rising trendline on December 18, 2024.
- Silver stayed beneath its trendline for twelve buying and selling days with out touching it.
- On day #13, silver as soon as once more reached its rising trendline.
Failed breakdowns are sometimes bullish. Why? As a result of there may be numerous gross sales stress related to the outage. Let’s face it: the complete funding group is taking discover.
Proof – Silver speculators are lastly giving up, whereas gold speculators are unanimously sticking round for a very long time.
However an important factor is whether or not there may be succession or not.
What issues equally is whether or not key chart constructions are recovered on a Fibonacci day.
The prospects of silver in 2025
Nonetheless, the silver chart stays bullish, in the long run.
Within the brief time period, it is uneven, and that is high quality.
The news can be uneven, so once more, information does not assist in understanding route.
Uneven setups are a prerequisite for a bullish consequence, supplied key help is revered.
Whereas fundamentals stay sturdy, the mass exodus of speculators is the very best information, particularly when mixed with the 50-year cup-and-handle reversal sample on the silver chart!