So long as silver remains below the 33.585 level, the outlook is for bearish follow-through action. Unlike gold, silver has not yet revisited its first rebound high from the deep low of September 26. That rebound high of 33.585 is, for now, the “C” point that we should be using to judge how low silver might go before its long-term uptrend resumes. The steep plunge began from the 40.770 level, and the corresponding midpoint pivot is just above the low, at 26.275. The “D” target of 18.965 is difficult to imagine, but this is the silver market after all. Should follow-through selling take silver through the midpoint and the low of 26.150, the biggest obstacles to its reaching the 18.965 “D” target will be the 2008 high of 21.350 (spot price), and the round number of $20. In fact, the odds of a reversal around the 2008 high would have to be considered quite good, given the familiar “kiss goodbye” pattern in which former resistance becomes support. The very short-term silver charts are not telling us much about imminent action. (Posted by Doug “harry” McLagan)
