The silver price is bouncing from an oversold condition as the Gold/Silver ratio spiked and we projected a near-term cool down in that ratio. Well, here it is. If the broad market bounce is very limited, silver will probably fail at the clear resistance area noted on the chart (22+) and the Gold/Silver ratio would turn back up.
However, a normal bounce could see it take out resistance and test the moving averages. That could be a nice suck-in (to silver, but also could happen in tandem with a proper broad market suck-in). To even begin calling an end to the correction in Ag (talking technicals exclusively in this update), 23.77 should be taken out and left behind along with the moving averages.
Have a nice weekend. I’m all written out until tomorrow when, yay me! I get to write some more.
