December Silver is getting nuked Sunday night, trading well beneath the worst-case target at 27.105 that I gave here last week when the futures were trading $5 higher. With index futures getting hit as well, though not (yet?) so severely, it is clear that whatever was troubling traders last week has spilled over into this one. Because 27.105 was such a compelling support, at least in theory, we must infer that there is still pent-up selling. Regardless, the futures are so breathtakingly oversold already that they could conceivably stage a powerful snapback rally at any time. If there is a logical spot on the hourly chart whence this might occur, I’d go with 24.420, the ‘D’ target of the pattern shown. There is also a case to be made for 25.590, for reasons that will be apparent when you view the chart.
