Great article. Not only is a reverse head and shoulders forming, but the Bolinger bands are pinching sharply inwards, a sign of imminent breakout (either up or down).
The fact that silver is leading gold down today indicates economic reasons, not just a dollar move. If so, these markets could unravel very fast.
1. I only had 2000 shares. I have low payments.
2. Your bullish technicals make a lot of sense, but I just thought $15.10 was too high for silver given the commodities surge. I was what one would call "lucky".
And even "substantial".
ZSL has held most of today's $.88 move, retracing only $.27. Moreover, SLV's gap down at the open created a bearish (for SLV) "island top", which followed Friday's technical failure (broke the previous high on light volume and closed under it).
All bullish for ZSL. I could be wrong, but the odds favor more gains, at least for now.
Silver below $10US an ounce by January 1, 2010.
ZSL well above $12 per share, from $7.25 today!!!
Negative lease rates on both gold and silver getting out of control, and highlight a massive supply of the metals overhanging the marketplace.
I have never seen a similar situation (bearish setup fot the metals) in my 25 years of trading. A stronger Dollar value vs. other currencies won't help gold and silver either, as money from overseas finds the stable U.S. economy again and financial banks/assets earning monster "carry trade" spreads of something like 5% annually, risk-free right now.
Why do you think the hedge fund guy Paulson is getting rid of his precious metals in favor of bank stocks like Bank America???