Although silver reversed four cents below our midpoint pivot of 43.540 at the top of Friday’s rally and has remained lower since then, the charts are saying that silver wants to keep moving up. A move above 43.540 would put the August 22 high of 44.295 in the crosshairs, with “D” targets at 46.050 and 48.265 next up, on the way to the all-time high just above $50. Traders looking for short-side scalping opportunities based on smaller patterns should use Monday’s low of 42.390 as a “C” point. (Posted by Doug “harry” McLagan) _________ UPDATE (11:58am EDT): In today’s silver forecast, published just before midnight last night, we suggested that traders looking for shorting opportunities use the 42.390 low as a “C” point. This alluded to a chat-room discussion that took place late yesterday morning (around 10:00), in which we posted a pattern with specific order levels: “sell SIZ1 @43.305 // stop @43.345.” At 1:51am today, silver peaked at 43.320, one tick below the pivot of 43.325, and then dropped by more than a dollar and a half. The maximum gain per contract from our suggested selling price (so far) was $7,950, while the suggested risk was $200 plus commissions.
