Silver Bottom

Silver's reaction looks to have put in a bottom. If you measure silver's retracement to the December low, it put in an about 50% Fib retracement. If you measure silver's retracement level to the late August low of 2005, it put in an about 38.2% Fib retracement. The two levels are very close to each other; strong support. Silver can streak to the upside in a heart beat.

Gold can keep on moving higher since the US dollar did not stop at the 86 horizontal support level. It went down 8 days in a row and through it. Then had a little up day; then on Thursday had a good down day and new low to almost 85 on the USD Index. I don't think this much speed to the down side is what central banks had in mind.