Wednesday, February 23, 2011

Silver - Off to the races?

World Silver chart over the last 3 months. Explosive rally to the upside is in tact and riding the upper Bollinger band. Silver has had the short term moving average cross over the mid term 5 days ago and stochastics are embedded. As long as the K line stays above 80, Silver will continue higher.

The Gold / Silver Ratio has dropped to a new low at 42.44 and looks like it will be going lower as it has broken through the 2007 low of ~43.

Some of the Silver miners are still lagging behind the Spot price. The solid mid tier and select juniors producers may start gathering steam to the upside before the end of February.

March as historically been a negative month for both Gold and Silver. (Seasonals in effect?)  Swing traders may want to lock in some profits in their Gold and Silver stocks near the end of this month. Nothing happens 100% of the time, so we can only watch the market, Gold and Silver and let the price action determine what to do.

Long term investors will just be sitting tight and enjoy your investment.  =)

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