On 6 year chart Silver looks very strong, all major trends are UP and intact. 2006 Spring-Summer correction holds above reasonable support lines which are matching to important 50% and 38.2% Fibonacci re-tracement levels. In a meant time price stays within the trading range between $11.00 and $13.25, however the MACD cross-over speaks in favor further price advancing...
This time we decided to use XAU/S&P500 Ratio together with EMA (Exponential Moving Average), offered by greatest StockChasrts.com, to look at the Gold & Silver Index development. The conclusions are:
- The current consolidation phase is not over yet...
- 150 and 165 resistance levels have to be broken in order to continue the major UP- trend...
- Descending Triangle sometimes is a reversal pattern, and the future development will reveal the direction within next few months, we just have watch its bounds for "breaks"...
- XAU/S&P500 Ratio and EMA compliment other indicators to identify and/or confirm current trend development..
