To be taken with a pinch of salt. The theory is relatively simple. When the VIX and Gold Silver ratios get so far out of the normal range, they tend to reverse but slowly over time. This usually leads to a bull run in the GDX and Silver prices if played out similiar to 2008. I would anticipate the Gold and Silver miners and Silver to be a buy in the coming months,...
Some interesting historical data on the price of Silver back from 2002- 2003 similar to what we 've seen happening for the last couple of weeks.
Blue line 50 MA
Yellow line 100 MA
Red line 200 MA
time frame weekly
Green circle 50 MA 100 MA golden cross on the weekly ,
Yellow circle 50 MA 200 MA golden cross on the weekly ,
Similarities with today's price...
Silver has been a bear of flat for 10 years, and seems to now be ready to make it's next run. After a 5 year consolidation at the lows we've seen the market breaking out and making it's first big move upwards. We've now had a retracement and price breaking up over the descending trend line. We may now be at the foot of a mighty rally in silver.
As mentioned on previous study we are completing that reverse head and shoulders bottom ,
The top of the shoulders along with the neckline form a right angled broadening wedge that we are trying to break out at the moment
If price accepts these levels I am expecting that measure move marked on chart to take place,
If not then a consolidation back to the...
Looks like we are completing the second right shoulder of this reversal pattern ,
All tops of three completed shoulders so far creating a trend line , that's been crossed by the head, looks likely that the fourth shoulder will touch that trendline as well,
Reverse head and shoulder patterns are as reliable as Head And Shoulder tops patterns, they do take...
As mentioned on previous chart for silver reverse head and shoulder pattern on silver is unfolding , interesting to see if it is going to follow the symmetry of the pattern and form a second shoulder to the right as it did to the left -the green line - in which case a nice swing trade inside the blue channel can take place before price finally takes off