Comex December Silver

The futures came down to within a few pennies of a 17.160 target derived from last Wednesday's high. They looked bound for still lower prices at the close, but we'll need to see a little more of the 'b-c' follow-through leg before we can confidently assess sellers' conviction.  Hidden Pivots aside, the trendline in the accompanying chart suggests that lows in the $14-$15 range are hardly inconceivable if the steeper trendline breaks.

The consolidation begun from last Wednesday's 18.175 high feels like it has a bit farther to go, but if and when it gives way to a  thrust exceeding  the 18.504 peak shown in the chart, that would be the most encouraging event, technically speaking, since late June. The nearest Hidden Pivot target of consequence on the daily chart is 19.920. Its sibling midpoint is 17.840, and we can infer the target is a good bet to be reached if the futures can close for two consecutive days above the midpoint.

We should welcome a stall precisely at 17.840, since a decisive breach of that midpoint pivot would strongly imply the futures will reach 19.920 once they've consolidated.  More immediately, the December contract is headed for a rendezvous with the 17.690 peak recorded in mid-September. If the resistance gives way easily, another 25 cents of upside should come painlessly.

The December contract will have a chance to turn from a minor midpoint support at 16.025, but if it doesn't, look for the slide to continue to at least 15.795, a Hidden Pivot you can bottom-fish with a stop-loss as tight as three ticks.  Both of those numbers are tied to minor patterns, but a larger one hints of selling all the way down to 15.445 (subject to a possible bounce along the way from 15.930). _______ UPDATE: The futures bottomed at 15.760, three-and-a-half cents below our target and low enough to trigger the tight stop-loss advised.

Applying Lindsay's rules straightforwardly, December Silver is entitled to a pullback into the range 15.120-16.645 before it embarks on another leg up.  The resumption of the bullish trend would be signaled by a booster-stage rally of at least _____ starting from anywhere within the given range.  The potential  for the move, measured from the low, would be ____.

Silver died after topping last week just above a 16.940 target I'd flagged, but the pullback will do no damage to the hourly chart unless it exceeds 15.850 in a downdraft today or tomorrow. Alternatively, the first hint of recovery would come today on a print exceeding 16.730.

Silver's most recent peak at 16.860 fell ___ cents shy of a clear Hidden Pivot at _____, so we should assume the December contract has at least a little further to go before it hits something solid. Position traders should consider lightening up, with the goal of replacing on the pullback any shares sold near the target.  If the futures close above _____ for two consecutive days, or trade more than 10 cents above it intraday, that would be a very bullish sign going forward.

The futures pushed slightly above a 16.265 pivot that had served as a short-term, minimum upside objective. The overshoot hints of further upside progress, presumably to the next Hidden Pivot resistance worth noting, ______.