SIK14 – May Silver (Last:19.565)

Three weeks of ho-hum price action have left the May contract with a mildly bearish bias, although any weakness would likely pick up support from lows near $19 recorded between early December and late January. Alternatively, I’ll stipulate that the futures must close above the 21.168 midpoint pivot of the pattern shown before we infer that bulls are emerging from their torpor. _______ UPDATE (6:02 p.m.): Yesterday’s dive to 19.220 found support just above January’s 19.030 low, but the subsequent bounce is as yet insufficient for us to conclude that the worst is behind.  The very lesser charts would turn short-term bullish today on a print at 19.675, but anything shy of that should be regarded as shorting opportunity.  All that aside, night owls could attempt bottom-fishing at p=19.335 with a stop-loss as tight as three ticks (see inset, a new chart). _______ UPDATE (11:29 a.m.):  This trade worked with absolutely perfect precision, since the overnight low was 19.235 — TWO ticks beneath where I’d suggested putting your bid. A 48-cent rally ensued.  (I also drum-rolled the trade, although without giving the exact price, in ‘Today’s Action’. If you filled the order please let me know in the chat room so that I can establish a tracking position for your further guidance.