For the same technical reasons I’ve suggested high caution in Gold, we should be even moreso in Silver, considering how steeply it has rallied this year. Although the selloff would have to hit 36.430 to turn the daily chart even mildly bearish, the hourly chart is already bearish enough, having generated no fewer than three impulsive downthrusts yesterday. The current and last of them has yet to play out and just moments ago rallied above its initial point ‘c’ high. As this pattern continues to develop, we should monitor it closely. The most bullish thing that could possibly occur would be an upward, impulsive (on the 60m chart) thrust off the ‘p’ midpoint of the pattern, similar to the one shown.
