The silver market is renowned for its volatility and complex behavior, which can make it a challenging yet rewarding investment. As we head into the 2nd half of 2024 and look ahead to 2025, one price level stands out as particularly significant: 28.88 USD/oz.
RELATED – Will Silver Ever Hit $50 An Once? Here Is The Answer And Must-See Charts.
In this article, we explore why this level is so crucial and what it could mean for silver investors.
Silver price: significance of 28.88 USD/oz
The price point of 28.88 USD/oz is not just another number on the chart; it carries substantial technical and psychological weight. Here’s why:
- Breakout Level: On the daily chart, 28.88 USD/oz marks a crucial breakout level. When silver crosses this level, it signals a potential shift in market sentiment from bearish to bullish. This breakout level is essential for traders looking for confirmation of a new upward trend.
- Fibonacci Extension: This price also represents the 100% Fibonacci extension level of 14.4, a historically important point on the silver chart. The Fibonacci extension levels, derived from the Fibonacci sequence, are used to predict future price movements and identify potential reversal points. The convergence of these levels at 28.88 USD/oz underscores its importance.
The silver price chart says it all:
Silver: understanding timeline analysis
While the price level of 28.88 USD/oz is crucial, the timeline analysis adds another layer of depth to our understanding. By applying Fibonacci principles to time, we can estimate the duration of market phases and potential turning points.
- Bullish W-Pattern Completion: The silver chart, on a daily timeframe, shows that it took an extended period to complete a bullish W-pattern. This pattern is a strong indicator of potential upward movement.
- Fibonacci Numbers and Time: Fibonacci numbers are not just used for price analysis but also for predicting future events based on time. By using certain percentages of the time it took to form the W-pattern, we can estimate the duration of the ongoing consolidation and future movements.
Note: this type timeline analysis sets InvestingHaven’s silver analysis apart from other analysts.
Silver: dates to watch in 2024 & 2025
Based on our timeline analysis, two critical dates emerge as potential turning points for silver:
- November 2024: We estimate that the consolidation around the breakout level of 28.88 USD/oz might continue until a key date in November 2024. Around this time, silver could start its next bullish phase, potentially reaching $50 which will be the basis for silver to ever move to $100.
- January 2025: Another significant period is January 2025, which marks another critical timeframe when we might see significant movements in silver’s price.
Continue reading – The Most Insightful Silver Chart Analysis You Will Ever Read
Conclusion
The price level of 28.88 USD/oz is a critical threshold for silver in 2024 and 2025. By combining traditional chart analysis with Fibonacci principles applied to time, we offer a unique perspective on the potential future movements of silver.
Fundamentally, we do not disagree with this cycle analyst who confirms that a multi-month top might be set in silver in case the grey metal does not move higher. In our own words, if silver does not set a higher high, certainly if 28.88 USD/oz gives up, we might need to wait till November and/or January for a bull run continuation.
$Silver – A monthly close below the upper BB after a monthly close above it usually means that the preceding top was a multi month top. The last exception was January 2011. A monthly close below the upper BB in July will likely mean that the May high was a multi month top. pic.twitter.com/FbflI19Kuw
— CyclesFan (@CyclesFan) June 30, 2024
As we approach the decisive dates of November 2024 and January 2025, we will continue to monitor the market closely. This scenario is not a forecast but a way to illustrate our methodology.
In our premium gold & silver market reports, we will follow up on silver price leading indicators as we get closer to these dates. Note, however, that we will not follow up in the public domain until after those dates.
