To 321gold home page

Home   Links   Editorials

CHARTWORKS - Mar 13, 2011
Silver – Signs of an Imminent High

Technical observations of RossClark@shaw.ca

Bob Hoye
Institutional Advisors
Posted Mar 16, 2011

The pieces of the unending puzzle are coming together in the silver advance. Silver made another new weekly high close at $35.83 on Friday. It was the only commodity to do so. The daily ratio of Silver to Gold produced an overbought reading of 80 in the RSI(14); indicative of a price high in silver within three weeks. The weekly chart of Silver produced an upside Exhaustion Alert, common within the last one to five weeks of intermediate rallies. The US Dollar Index has a weekly Sequential Buy Setup, seen around interim lows in the currency and around interim highs in Silver.

The final push to a price high often sees an exponential move that should be used to pare back positions in anticipation of a correction to the 50-week exponential moving average in the following months. A violation of $33 would indicate this rally has concluded.

(Click on images to enlarge)

###

Mar 13, 2011
-Bob
Hoye
Institutional Advisors
email:
bobhoye@institutionaladvisors.com
website: www.institutionaladvisors.com

Hoye Archives

The opinions in this report are solely those of the author. The information herein was obtained from various sources; however we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized.

Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities or options or futures contracts. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in this report. In addition, investors in securities such as ADRs, whose values are influenced by the currency of the underlying security, effectively assume currency risk. Moreover, from time to time, members of the Institutional Advisors team may be long or short positions discussed in our publications.

321gold Ltd