Last week on August 5 we featured a chart of the silver market. We are updating today with this 240 minute chart. In last week’s blogspot we brought out the relation of certain Fibonacci ratios to the price action in this market. Today’s update will help illustrate that at this time, at least, there are retracement fib ratios in play. The day after we posted the previous chart the market made a reversal day bar with new high for the move and a lower close. The subsequent follow through to the downside found an area of support this morning and is pushing up at a .500 retracement level which we show as 1458. The high so far today has been 1456. The next level is a .618 retracement at approximately 1469 basis the September contract. We are not making a recommendation to buy or sell any contracts with this commentary. We hope to show that these ratios can be utilized as a tool in trading. We are happy to talk with those who are interested and who have questions or ideas to share.
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