Monday, February 21, 2011

SILVER Weekly Chart Overbot Negative Divergence

SILVER weekly chart showing overbot conditions and negative divergence but since the recent move was so momentum driven, price will probably stay in more of a sideways posture moving forward. Watch the RSI to see if the negative divergence stays in place over the next couple weeks, if so, down she goes.

With the Gold:Silver ratio in the low 40's, then moving forward for weeks and months ahead, gold should outperform silver. Silver is moving stronger than gold the last few days since the Gold:Silver ratio is drifting lower. Silver does not have any oomph for this recent move up as shown by the negative divergence. One thing silver bulls can hang their hat on is that the trend is strong as shown by the ADX above 30. If the ADX goes sub 30 with the negative divergence remaining in place, down she goes.  This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.

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