What a strange day. Gold fell all the way back and checked $1120 before recovering to close modestly higher. Why did gold fall apart after rising to $1132 in London? Surely, The Gold Cartel was on the case. And then there may been some buy silver/sell gold spreading going on.

The trading in silver was bizarre. After a very firm opening above key resistance at $17.50, silver tanked all the way down to $17.34. Unable to fill a penny gap it came right back to go up a dime. Then when gold was under constant pressure later in the day, silver barely traded and never fell like it usually does when gold is taken down. Finally, silver inched up going into the close, closing right at critical $17.50 … a "sterling" performance, closing right off its highs of the day.

May silver
http://futures.tradingcharts.com/chart/SV/50

It just could be silver is readying to make the giant move many of us keep looking for. RG thinks so…

Bill,
I know it’s usually the kiss of death when I find positives in my technical analysis but there truly seems to be something very big building up in the silver market, I’m not just referring to the very near term, which itself looks increasingly positive, but more the medium to longer term outlook, Who truly knows when this gasket will finally blow but whether it’s in the next week, month or year, it should be very rewarding to those of us that have been waiting patiently by,

Looking firstly at the near term,

It’s very encouraging to see that on the Daily chart the RSI is still looking very positive as a precursor for the near term prospects of Hi Ho, Note that having broken out of it’s 6 month declining trend, it revisited the trend line and has now drifted back up again, Any move higher from here in the near term should set off further alarm bells for the shorts as it ascends past previous bimonthly peaks around 63-65!

Near term aside, the real excitements for me lie in the bigger picture,

Any further upside in the near future for silver, as the chart above suggests, will in all likelihood start to put pressure on the gold/silver ratio (see 2nd chart below), Note this ratio is still grinding in a well defined consolidation pattern, in gold’s favour, that began following the high’s that were set in silver in early 2008, It may take some work and a while longer to get this ratio to break down below the ascending trend line, but once it’s through comfortably, my guess is the real fireworks start for the silver bulls!

My Note: The article went on to discuss silver in terms of the DOW/Silver ratio and other currencies than the US $. Botttom line is that the author indicated a bullish picutre for silver in numerous technical views. The author is "Rich from ‘The Scarborough Bullion Desk’ "