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Precious Metals -
Opportunities in the Correction Zone

Technical observations of

Bob Hoye
Institutional Advisors
Posted Dec 10, 2010

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.

(Click on image to enlarge)


Dec 8, 2010
Institutional Advisors

Hoye Archives

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