OBSERVING PRICE ZONES.......IF FALURE BELOW 1211.20
THEN LAYING OUT SOME PROBABLE PATHS OF PRICE..
ANY CLOSING FAILURE BELOW 1175 INCREASES ODDS
THAT PRICE WILL RUSH TO THE BREAKOUT AT THE
BOTTOM OF THE BASE..
STAYING ABOVE THE HIGHLIGHTED
BALANCE POINTS GIVES THE DESIRE BIAS OF ITS PATH.
Great increase of upward movement today on greater than average volume. Prices closed very near the high of the day; however, even with the extra volume prices could not break resistance (C).
The next few trading days will be very important. If the rally falls and this creates another lower high below resistance (D) then I believe we are seeing larger scale...
$GLD $SLV Gold/Siver is trading up around levels that have tended to lead to significant silver outperformance on a relative basis. However, watching the prevailing trend in the gold-silver ratio also provides some clues as to the performance of silver on a absolute basis.
On the chart, marked are the three previous cases when the gold-silver ratio has broken...