In a report today Patrick MontesDeOca, CEO of the Equity Management Academy, forecast silver reaching $19.00.
In a February 10 report, MontesDeOca said, “The magnitude of the rally pretty much fulfilled the profit objective for this leg that started in December.” He predicted that silver would go down to $17.12 to $16.76,” although it could move down to $16.76, which would be a 50% Fibonacci retracement. Below that, he said, “We are looking at a 61% retracement to $16.50.” Turning to the VC Price Momentum Indicator, MontesDeOca said, that it indicates that the market had activated lows of $17.12 to $16.75, with “a high probability of $16.75 being reached over the next several weeks.”
Today, the last is $16.9350 and the recent low was $16.8550. Therefore, MontesDeOca said, “We are coming down into the low end of this target zone of $16.75.”
Looking at the levels of resistance and support, MontesDeOca said, “On the upper end of the chart, we see resistance levels measured from the highs made in August of last year. The market broke through this trend-line resistance activating the second-level, but failed to close above it. It came down precipitously on March 2 and closed below it the first level of support, which activated a short-term correction and brought the price down to the low that we saw today of $16.8550.”
“If you look at the market and measure from the recent low of $15.68 to the recent high of $18.54,” MontesDeOca said, “we can see here basically a correction that leads us right into almost a 61% Fibonacci retracement correction with the golden ratio number of $16.74.” He explained that the level of $16.96 is basically the first target from the high that we saw back in August and the recent December lows. He said the market has come back down to the 23% Fibonacci retracement long term, but short term it has accomplished close to a 61.8% retracement. He said the market is near some “major levels of support.”
“If we add the VC Price Momentum Indicator,” MontesDeOca said, “which are the codes that we use to identify where we are in relation to all the other metrics we use, we are in a major harmonic level where we are joining the daily signals that are telling us to buy at these levels with the weekly levels.” He said, this convergence “Identifies the highest probability for us to go long” to make a profit.
Where are we going from here?
“The market has activated a daily buy signal of $16.89,” MontesDeOca said, “a buy-two level is pending at $16.75. The weekly is recommending that if we close above $17.10, it would activate a weekly buy signal, and a breakout would occur on a close above $17.42. So these levels, particularly closing above $17.42, would activate the upper end of this target zone, pointing us toward $19 for the silver market.”
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