Technical observations of RossClark@shaw.ca
The high RSI readings in the Silver/Gold ratio have resulted in the first significant correction in the metals and mining stocks in a month. An A-B-C price decline, consisting of two waves of selling, would be ideal (as seen in Jan '98, May '87 and Oct '79).
Optimum silver support is $23.50 to $25. Gold could re-test the $1320 to $1340 range.
We will watch for simultaneous RSI(14) readings in both metals below 50, although an individual reading into the 30's in silver would not be a surprise.
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