silver - $4.72 (us$) is the key

  1. 9,081 Posts.
    This extract from an article by Cliff Droke (27/12/02) is an interesting observation on sliver, the "laggard" in the precious metals revival.

    I do not think that the label of "laggard" will hold for much longer. It is only a matter of time until silver, too, is awakened from its slumber.

    ".....Another technical feature of the silver chart worth pointing out is that a classic "fan line" correction has nearly run its course.

    This is when three successively higher downtrend lines are broken as prices steadily absorb overhead supply and make their way up with higher highs and higher lows.

    This is exactly the picture that silver has been etching out in recent weeks and months, and yet one final obstacle remains-the final downtrend line that presently crosses the $4.72 area.

    Once silver overcomes this final line of supply the way will be all clear for a long-awaited and well-earned rally to begin."

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