The chart suggests that the correction will continue untill it reaches its long-term support running from 2011. It is quite logical that this will follow after the washout experienced by precious metals in March causing this anomaly when silver lost about 50% of its value in terms of gold. I am expecting the ratio to be equal to 88 by early July. This implies a bullish market for gold and silver, where XAGUSD will outperform. Lookout for updates regarding silver, we will see some interesting price targets and nice trading opportunities.
Trade active:
Target could be reached by June 29th. When the ratio reaches 94.70 - the previous low, I will use the profit from my current position to pyramid and open another position.
Trade active:
94.70 sell stop activated, added to our current position.
Comment:
Silver looking very very strong. Target to be reached soon.
Trade closed: target reached:
It has reached the line of support.
