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Wednesday, June 6, 2012

Gold/Silver Ratio: Critical Levels of Support & Resistance

Published by Charleston Voice, 06.06.12

Silver bulls want a declining Ratio out of "feel goodism" while bulls prefer a rising Ratio so they can add to their positions at a discount. Realizing this bull in silver could run until 2017, both will be delighted, albeit at higher prices on a G/S declining gradient.

Take note - this is a weekly chart. The 4-week MA of 55 has not yet broken through its 7-week MA of 54. Furthermore, the SAR dots have not yet reversed inversely to bullish. The Daily chart (not shown) has broken bullish on all these indicators.

What the Daily does indicate, however, is this:

G/S cycled to a High of 68.226 on August 22, 2010
Silver peaked at a Low of 17.85   "       "         "

G/S cycled to a Low of  30.452 on April 24, 2011
Silver peaked at a High of 49.786     "         "

Make what you will of these numbers. Do your own percentage gain spread goals. We tipped you two days ago the US$ was tipping over as a preliminary spark to anticipate the metals' rise. If the G/S dropped 55.4% in that period, and silver's price rose 279% - - what will be your price target for silver using these same ratio parameter percentages?

Free charting @Netdania

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