Silver remains range-bound after its late-September dive, although with higher volatility than was typical before the major highs made in April. The pattern of higher lows and lower highs on the attached chart shows that little or nothing impulsive has happened since the huge decline in September, which leaves us with no high-probability targets to work with. Whether the current consolidation will end with a move up or down is also a mystery. According to our method, there should be a follow-through decline after the September collapse, but the chart tells us nothing about whether this is imminent or whether it will follow an upward move from the narrowing range of the last two weeks. It wouldn’t be very nice of silver to rally by three or four dollars and then to sell off hard, now would it? We’re going to put this scenario in the “don’t be surprised” file. (Posted by Doug “harry” McLagan)
