We remain focused on a 22.505 target that comes from the weekly chart (see inset), but keep in mind that buyers will need to push the futures past a daunting peak at 22.055 recorded in March of 2008 that would have trapped bold legions of Silver bulls. They will be laughing in the bad guys’ faces if they can close Silver above that peak today or tomorrow, but just getting as close to the peak as the futures have done already suggests buyers are not intimidated. You should also take time to notice on the weekly chart that the rally from late August’s low at 17.785 is as yet unpaused, and that a further extension above 12.055 without a pause will create a very powerful impulse leg — powerful enough, in fact, to fortify the futures against a corrective move down to as low as 16.640. For today, traders can short 20.505 via a two-contract offer a tick below that price, and a stop-loss at 20.525.
