Silver is now technically more oversold than during the 2008 Silver crash. Even though the silver crash in 2008 was nearly 60%, this fall has been very sharp and short in duration, which has now led to a very severe oversold condition. I do think we have more downside to go, even though Silver may have shown relative strength on Friday, I dont think we are going to bounce until we see some more action on the downside.
Although that is not to say that we dont bounce by the end of next week, I think this oversold condition will be so oversold that it will lead to a big bounce that will take us back to $40.00 plus once complete.
The MacD which is the momentum indicator is now fully reset, and once we begin to move to the upside, we will at least triple from the breakout area of $50.00, which is $150.00
I will be selling physical into that rally at about $130 which will be another year or two in the making. I believe Gold will firm sometime in August, we are merely in a trading range currently. The US$ will begin to fall from there, and Gold will break $2000.00 an ounce this year.
I dont think there is much time left as the americans can't kick the can down the road any further.
My opinion only.
Cheers,
Al.
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