PHS.U, Sprott physical silver.

phs.u dec 27 2012

Diagonals are 3-3-3-3-3 structures that are always, supposedly, found at the end of a sequence of five waves. But there is an exception discovered at a later date. It is the Type 2 diagonal. Sounds like diabetes. It occurs at the beginning and follows the 5-3-5-3-5 structure. This could be one of those things. The RSI suggests a turn is coming soon and the b-wave in the a-b-c rebound is particularly well formed. Therefore, tentatively, we think silver might have a little bull run here. The target is about $16 where the 4th of previous degree resides. Do not put all your money on this bet. The a-b-c could be more compressed and already complete but that is at odds with the RSI. By the way, Sprott has these physicals for gold and platinum as well.