goldsilverworlds.com / By Michael Noonan / March 10, 2013
Based on the tape, [in chart form], precious metals appear postured for a rally. To what degree is unknown, but current developing market activity favors one. Silver continues to outperform gold, and we start there.
Based on February’s low-end close, one would expect at least a nominal lower low for March. That event has occurred, and already one-third through for the month, there has been no other downside effort. Just that showing alone gave rise for expectations of a better performance this month.
Price still remains entrenched in a sideways trading range [TR], and they tend to last a lot longer than most expect, this one being no exception.
We often draw attention to the last August breakout as being significantant, and the strong likelihood for its breakout to be important support. That has not disappointed. Now, in addition to the lower channel line also checking the price decline, we note an important drop in Open Interest over the past few weeks.