Hey Ronbo. Good to see you're doing OK. So you've found another Russian chick have you. Glad to hear it's better than the last one that had "issues". I recall asking you on the last one if she had a sister. Glad she didn't I guess. Not sure if I could handle a "Twisted Sister" or not. But I guess one doesn't know until one tries. If she does and has long Blondie hair with purple streaks and owns a motor bike let me know. I've been told you only live once. While I don't agree with that I guess it's best to utilize each one as they come along. And they also say variety is the spice of life.
OK,so hear is a Weekly chart of Silver. See unlike Gold that broke its 3.5 year uptrendline and its health is questionable still technically Silver did not break its 3 year uptrendline. The Silver to Gold ratio did recently hit over 58 to one which is high. Notice every year like clock work Silver starts it rally in August and goes crazy for a good run up.(late 2008 was the exception with everything selling off) Nothing different this time. But there are two downtrendlines to clear. I feel the shorter one is more valid as it was respected several times but the spike high last Feb can't be totally ignored so I drew a line across it as well. What is of major importance is the 26.50 support that must hold or kiss it all good bye. So far that looks solid and has stood the recent test along with its 3 year uptrendline. Those Fib numbers don't help much with Silver as it never has had much respect for them and tends to exceed them unlike Gold that does respect the major Fib numbers especially 61.8%. But I threw them in there for reference anyway. So the bullish seasonal trend in all time frames shows a Silver low in mid to late August with zig zagging run ups to a high in mid February. BUTTT Silver does tend to top out in late Sept and then Oct tends to sell off hard and then from the end of Oct to mid Feb works its way higher. Just something to keep in mind as those are the historical typical trends of Silver. I focus more on support and resistance and price action. But the key now if for Silver to hold above $30 as this was the April low that broke down in May and proved to be price resistance in June. Price has now cleared this resistance point which is a breakout over a 3 month channel between 26.50 support and 30.00 resistance. That is very bullish. If Silver sees a close below $30 anytime soon it would suggest a retest of major support at $26.50 which would be questionable at that point. I would not bet on another successful re-test of $26.50 myself as that price point has been jumped on too many times to handle another one. So yeah, a Straddle would work well but so would a cheap OTM Strangle at this point in the pattern. Good luck with it and post about things when you get a chance. I always enjoy reading about your 'adventures'. Gotta try some of that myself someday.
