Technical observations of RossClark@shaw.ca
Ideally, silver will produce a high early next week and then experience a 62% pullback of the rally from June 27th. The bottom of the corrections during July in both gold and silver should be coupled with simultaneous RSI(14) readings below 50 (not 40 as was needed for the initial low in June).
The strong stocks should only give back 50% of the recent gains.
The ensuing rally is expected to reach a level 7% above a 100-day moving average of the highs in both gold and silver (currently $1576 and $40.45).
The broad stock indices in the sector should find resistance 22% to 25% above the June lows by the end of August. However, if the silver price achieves its upper 7% band then it will be time to lock in trading profits in the stocks.
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