Technical observations of RossClark@shaw.ca
The RSI(9) in silver dropped by 22 points into last Thursday. This action matches the three to five day consolidations seen coming out of the lows in December ’07, February ’06, January ’04, December ’82, April, November ’79, August ’79, April ’79 & January ‘79. For the correlations to remain perfectly in place we should not see a close below $32.10 or the 20-day moving average (currently $31.20) before the measured target of $40 to $43 is achieved. The ‘line in the sand’ for all, but core positions, should be raised to $30.80.
The silver/gold ratio continues to see silver outpace as in classical bull market fashion. It put in an overbought, but not extreme reading, on February 23rd. This suggests that we will the next significant price high in silver in mid to late March.
(Click on images to enlarge)
Examples of similar action in gold, silver and the gold/silver ratio
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herein was obtained from various sources; however we do not guarantee
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