Saturday, April 23, 2011

Silver Crash 2006 vs Silver Today, Does it look Familiar?

By: Submissions

Willem Weytjens writes: First of all, here is an update of a chart I posted 3 weeks ago…



Chart created with Prorealtime

Second of all, here is a chart of the gold-to-silver ratio:


Chart courtesy stockcharts.com 

Now let’s have a look at Silver in 2006, when it also made a parabolic move:


Chart courtesy stockcharts.com

Here is the current situation:



Chart courtesy stockcharts.com

Although silver is not as stretched above its 50 days Moving Average as in 2006, it is as stretched above its 200 DMA as in 2006.

Also, the RSI is very high, but not as high as in 2006, so we MIGHT see 1 or 2 more days to the upside, but then we might get a Deja Vu of 2006.

For those of you who want to know what happened on April 20th 2006, here is a chart:


Chart courtesy stockcharts.com

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