the gist of this article is that either silver will go up a lot, or it will go down a lot. that's why i love technical analysis:

As we can see from the chart above silver prices are looking a tad overbought. They have been playing catch up with their big brother gold of late and may now need to take a breather. However golds influence is huge and should it go on to take out its previous high of $1033/oz the door will open for a seriously good rally. Silver will no doubt join in the rally regardless of technical analysis and what the charts say.

The technical indicators are suggesting that silver is overbought and we must remain aware of what the charts are telling us, however they do have the capability to consolidate and go sideways for a while so it will be interesting to see just how it trades over the next week or so.

All eyes will be fixed on the major driver of the precious metals markets which at the moment is the US Dollar. Its value is diminishing before our very eyes as it closed on Friday at 76.68 on the USD index. The technical indicators for the dollar are saying that it is oversold so we need to be aware of a possible bounce and a mini rally waiting in the wings. Its hard to see what could trigger this rally as the dollar remains friendless and unloved with a number of eminent pundits advising all who will listen to get out dollars as soon as possible.

A further decline in the dollars value will be golds cue to take a swipe at its all time high and should gold be successful in establishing new all time highs then it will be off to the races for silver.

Hang on firmly to your core position as always and it just may be better to wait and see what transpires before making any more acquisitions of silver mining stocks, they too look a little overbought for now. If we do the get this much awaited breakout then by all means scoop up your favourite stocks by the bucket full.

http://www.silver-prices.net/silver-at-a-critical-juncture/#more-703