The following chart shows that the Silver metal (SLV) was over-bought in May-06 and again in Dec-06. The best entry point was in June-06.

Recently in Sept-06 and Jan-07 there were pull-backs to attractive buying points (ie, the Accumulation Zone).

But the market still looks bullish for Silver in early February, and I think there is more to go on the upside in the next three months. I like the action of the RSI, which is showing that the last two entry points happened at RSI values above the 30-line. That’s a bullish sign.

With this illustration, I show the comparative price of Silvercorp (TSE: SVM) (in blue) to the SLV metal ETF following the full TSE listing of Silvercorp last May. On a comparative basis, SVM has finally caught up to SLV.

As you may be aware, my top pick in this space is Silver Wheaton (SLW).

I am going to stick with the Silver trade unless I see the price of Crude Oil dropping below 55, or get an indication from BoE and ECB tomorrow that rates are rising again, or a statement from the G-7 ministers at their meeting this weekend in Germany saying things like they intend to start tightening across the board to snuff out inflation.