Silver looks prime for break | Gold : Silver Ratio is looking pretty extended

Silver has just managed to start an uptrend with 2 days of higher highs.  I am expecting a rally to $42-$45.

Currently the Gold : Silver ratio is $1799.40/$39.03 = 46.1

 

Silver seems found its precious metal feel in starting in August 2010 with a rally from $17 to $30 by year end.  Silver stalled out in January but then quickly increased to around $48 at the end of April .  The sharp pull back that follow was perceived as a the "end to a bubble" by the mainstream media only to the $30-$32 range has held as support very well and is likely to be the low or a while.

Since the historic Gold : Silver ratio being around 16, this convergence will be of epic proportions.

Silver retraced 61.8% from the previous move which we can label Wave 1, this pull back has likely ended based on the bullish setup.  Candlestick pattern can be arguably considered a Morning Star.

The slow Stochatics is oversold and the MACD looks like it is rejecting the 0 level which will result the MACD line crossing the signal line over the next few days.