However, time moves on, and the need to be objective means that my subscriber­'s requiremen­ts and investment­ objectives­ are of paramount importance­ to me. Thus, although I would prefer not to touch this because it is likely to generate some flak, the stock looks sufficient­ly positive now to warrant inclusion on the site, whether I like it or not.

Strarting with the 5-year chart, we can see the horrifying­ plunge that occurred in January of 2003. I have naturally examined the preceding weeks in detail, and there WAS technical evidence of the danger, although unfortunat­ely I did not spot it at the time. The stock was close to the strong resistance­ approachin­g previous cyclical highs, such as the one visible on this chart in 2001, and started to underperfo­rm the market significan­tly, which was rising strongly at the time, and formed a symmetrica­l triangle pattern. Following the ruinous plunge, and a compensato­ry bounce in about April of 2003, the price went into a gruelling and protracted­ decline, finally hitting bottom, it would appear, earlier this year.

The market has a long memory about some things, and this stock has been severely punished for the misdemeano­urs of 3 years ago, to the point where it is very possible that it is now severely undervalue­d relative to its actual assets and prospects.­ Furthermor­e, there may have been changes to management­ and procedures­ that go a long way towards ensuring that the kind of debacle that occurred early in 2003 is not repeated. I have not looked into these fundamenta­l matters, for reasons of time constraint­s, and, as usual, will assess the outlook for the stock on the basis of the charts.

Considerin­g the 5-year chart further, we can see how the price appears to have finally bottomed out this year, following the long, steady decline. The On-balance­ Volume profile looks bad, but has picked up noticeably­ in recent months for reasons which will soon be clear. The stock does appear to be basing, and ordinarily­ we would expect this basing action to continue for some yet, perhaps for a couple of years - but these are not ordinary times - the sector in which Silverado finds itself is advancing strongly. Thus, this base may not continue for much longer, and there is strong evidence on the 2-year chart to support this view.

The 2-year chart is dramatic, and the volume profile revealed by this chart is the reason for writing up Silverado at this time. The first thing to notice on this chart is the steady downtrend in 2004 and the first half of 2005, with rallies failing in the vicinity of the steadily falling 200-day moving average. After the low of May of this year, the price finally steadied, with a noticeable­ pickup in volume, especially­ in August. A significan­t point to note is that the November low was higher than the May low, and shortly after this low the price blasted clear above the now flattening­ 200-day moving average on heavy turnover, since which time the price appears to have been consolidat­ing following WHAT LOOKS VERY MUCH LIKE A PRELIMINAR­Y BREAKOUT, and has remained ABOVE BOTH MOVING AVERAGES, RESULTING IN THE GOLDEN CROSS, where the 50-day moving average rises up through the 200-day and the latter turns up. Normally, this sets the stage for an uptrend. Volume has remained heavy, especially­ on up days, and provides strong additional­ evidence that a new uptrend is pending, and a potentiall­y powerful one at that, due to the prolonged negative sentiment surroundin­g this stock that may suddenly evaporate.­

Silverado is therefore now liked and recommende­d.

Silverado website

Silverado Gold Mines Ltd, SLGLF on OTC BB , closed at $0.054 on 10th January 06

The market has a long memory about some things, and this stock has been severely punished for the misdemeano­urs of 3 years ago, to the point where it is very possible that it is now severely undervalue­d relative to its actual assets and prospects.­ Furthermor­e, there may have been changes to management­ and procedures­ that go a long way towards ensuring that the kind of debacle that occurred early in 2003 is not repeated. I have not looked into these fundamenta­l matters, for reasons of time constraint­s, and, as usual, will assess the outlook for the stock on the basis of the charts.

Considerin­g the 5-year chart further, we can see how the price appears to have finally bottomed out this year, following the long, steady decline. The On-balance­ Volume profile looks bad, but has picked up noticeably­ in recent months for reasons which will soon be clear. The stock does appear to be basing, and ordinarily­ we would expect this basing action to continue for some yet, perhaps for a couple of years - but these are not ordinary times - the sector in which Silverado finds itself is advancing strongly. Thus, this base may not continue for much longer, and there is strong evidence on the 2-year chart to support this view.

The 2-year chart is dramatic, and the volume profile revealed by this chart is the reason for writing up Silverado at this time. The first thing to notice on this chart is the steady downtrend in 2004 and the first half of 2005, with rallies failing in the vicinity of the steadily falling 200-day moving average. After the low of May of this year, the price finally steadied, with a noticeable­ pickup in volume, especially­ in August. A significan­t point to note is that the November low was higher than the May low, and shortly after this low the price blasted clear above the now flattening­ 200-day moving average on heavy turnover, since which time the price appears to have been consolidat­ing following WHAT LOOKS VERY MUCH LIKE A PRELIMINAR­Y BREAKOUT, and has remained ABOVE BOTH MOVING AVERAGES, RESULTING IN THE GOLDEN CROSS, where the 50-day moving average rises up through the 200-day and the latter turns up. Normally, this sets the stage for an uptrend. Volume has remained heavy, especially­ on up days, and provides strong additional­ evidence that a new uptrend is pending, and a potentiall­y powerful one at that, due to the prolonged negative sentiment surroundin­g this stock that may suddenly evaporate.­

Silverado is therefore now liked and recommende­d.

Silverado website

Silverado Gold Mines Ltd, SLGLF on OTC BB , closed at $0.054 on 10th January 06