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Diffusion
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A self-directed investor and a software engineer
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  • Silver / Gold Ratio Approaching Target 2 comments
    Apr 21, 2011 9:41 PM | about stocks: SLV, GLD
    SLV:GLD keeps moving higher followed my projection in one of my previous post. The technical target is the height of trend channel that defined the movement of the pair in the past 7 months. As shown in the chart below, it is approaching to its target. As a key technical target, weakness is expected when it's hit. Nonetheless hitting the target is not a trigger for shorting SLV and longing GLD. The behavior of the pair at the target shall be watched closely by traders to understand future direction. 


    Themes: Pair trade Stocks: SLV, GLD
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  • fdesanzo
    , contributor
    Comments (6) | Send Message
     
    The chart may not take into account the margin requirements that may be coming.
    Could change the whole game.The same with uso,gld.
    "they" don't like it when we shun the dollar.or hedge oil prices due to the non existent energy or currency plan.
    22 Apr 2011, 02:43 AM Reply Like
  • Diffusion
    , contributor
    Comments (176) | Send Message
     
    Author’s reply » yes, this is pure technical view. and personally i believe that technicals follows fundamentals. so approaching key resistance doesn't mean it will reverse, it only means that the behavior on key resistances is important for future direction.

     

    and for the margin requirements, i think its impact on gld might be relatively less, as there is not much industrial use of gld. but slv and uso are heavily participated by commercial hedgers.
    22 Apr 2011, 03:17 AM Reply Like
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