Keno's strength on such low volume in the face of this rapid downside correction in the price of silver speaks volumes for its growing underlying strength. Let me draw your attention to chart #7 in the website below:
geocities.com
Note the previous highs reached by silver there - $5.99; $6.13, and note the awesome meteoric rise in its price recently. This kind of move is unsustainable - it got way overbought, and now it's coming back to the atmosphere of reason. From that chart, I'd say a retrenchment in the price of silver in the $6.00 -> $6.40 range wouldn't be out of hand, 'though remaining above its previous peak of $6.13 would be the best scenario - this would be its support level on this downslide, where it encountered resistance on its way up - kind of a "back-of-the-envelope" charting analysis, but then, in this kind of market, civilized, decent analyses seem to be brushed aside, don't they? Any comments from you armchair technicians out there?
Also note the pattern for the XAU index - (this is a neat site!)
mgl.ca
Note it bottomed, rose, and is now pulling back to an apparent support level - just about completing the classic inverted "shoulder-head-shoulder" pattern - the webmaster, Yvan Auger, sees bullishness ahead for silver, followed by same for gold. This site is updated every Saturday evening - and he's been right on the money lately. But it's longer term, to be viewed when your heart is groaning under the "whoop-dee-doo's" of day-to-day, hour-by-hour wildness!
I agree with Kaiser - when the merger is ratified and mining begins, UKH will begin to move - and when it reaches $5 or more, that's when you'll see the analysts appear on your favorite business channel saying what a good BUY it is. Well, that's how it usually goes, they never advise anyone to get in at the bottom, that's where THEY're getting in. Risk? Of course! Silver may go down to $4.00/oz., but vanishingly small probability at this point in time, I would think!!
And hey! I'm like Ed here: I always feel I should pay more for a stock! :) (I paid more than you did for some of mine, partner!)
Harry K.
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