Please have a look at these charts, that show us what happens after a silver parabola bursts.
The following chart is an updated version of this article.
We took the 1993 low of $3.50 as the 0% Fibonacci level and then drew several Fibonacci retracement levels, whereby the 38.20% levels coincided with the consolidation levels. We can see that after the three previous peaks, price always retreated at least to the 50% level. The current correction was halted at the 61.80% level.
As the charts above show us, when a parabola bursts, it takes time - a lot of time - before the next leg up begins. Will this time be any different, or are silver prices headed for more correction?
Willem Weytjens, originally from Belgium, is currently living in Oslo, Norway. He has been an active investor for over 12 years, forecasting the latest financial crisis, rise in gold & silver prices etc. He recently founded his own company, Profitimes, enabling him to spend all of his time dealing with financial markets.