Let's take a look at something that gets relatively little air play here on this blog, other than as a tool in ratio to gold (the gold-silver ratio is looking pretty sad by the way, which means party on Wayne, party on Garth). Let's take a look at silver.It is ironic but not surprising that the HUI and silver tend to be better correlated than the HUI and gold. This gets gold bugs cheering 'yey, silver is leading!', with pom poms and all. Silver leads the way higher into speculation and ultimately, euphoria. So now the dour blogger looks at the daily chart of silver.
Everything looks good to go for a try at the 16 level. The support it is finding at the 50 day moving average is important. The caveat would be that silver had better rise to the 16 area, which would negate the potential of a right shoulder of an H&S top forming.
