Courtesy of Chris Kimble
Silver has been much weaker than Gold over the past 8-years!
Is that trend about to change? Possible!
This chart looks at the Silver ETF & Gold ETF (SLV/GLD) ratio on a monthly basis over the past 8-years. No doubt the trend for the ratio is lower, as it has created a series of lower highs and lower lows inside of falling channel (1).
While testing the bottom of the 8-year channel in March, the ratio created a rather large bullish reversal pattern at (2).
So far this month the ratio is pushing higher off of the bottom of the channel, which sends a short-term bullish message from the SLV/GLD ratio.
This signal suggests in the short-term that SLV and Silver Miners ETF (SIL) should reflect relative strength over Gold for a while.
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