Trading Silver Fibonacci Ratios Real Time

Today Patrick MontesDeOca, CEO of the Equity Management Academy, used analysis based on Fibonacci ratios and the VC Price Momentum Indicator to predict that silver might move up to $19.09.

In early December, MontesDeOca published reports positing a “major buying opportunity” in the silver market with the potential for a “major breakout to the upside” and a target of about $18.00.

He said, “Now we’ve accomplished that target.”

What next?

MontesDeOca said, “The market is in a continuation pattern. The market closed above the 200-day moving average, which is very bullish.” He expects a breakout to the upside.

How high are we going to go?

MontesDeOca used Fibonacci retracements from the high last year in August, which provide a “pretty good indication where silver will retrace to.” After a low of $15.68 on December 20, the market has risen to $18.47.  He said, “It’s up a pretty substantial move. . .It appears that even though the market is overbought, there it still has some room to run, potentially reaching the 61.8% retracement of $19.09 or $19.10. “

If the market moves up to reach those targets, then $20.04 is in reach, which is a 78.6% retracement of the entire move from August of last year. Such movements validate for us two indicators: the market is above the 200-day moving average and the market is confirming that we’ve accomplished a 50% retracement from the low last year of $15.68.

MontesDeOca said, “The market on the 24th of February made a new high of $18.46, crossing a resistance trend line, and targeting the 50% Fibonacci retracement.” The market accomplished that target and then came back down to test that level. “Once resistance is broken,” he said, “it becomes support. Closing above $18.44 seems to activate this upside pattern.” Even so, he said, “There are still objectives to the upside to accomplish before this move is over.”

Based on algorithms that identify the supply and demand levels in the market, MontesDeOca identified new targets in the $18.55-to-$18.62 range, all the way up to $18.88. “Closing above $18.44 activates all these targets,” he said, “all the way up to $19.09.”

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