Silver should run into resistance at 33.675, just below last week’s high, but if the bulls can dispatch both of those levels, $35 comes into play with a “D” target at 34.985. With the silver market, we go three-for-three in using last Wednesday’s low as the A point for our pattern. It must be said that silver has not recovered as convincingly as has gold from the deep lows of late September, and as in the other two markets covered today, we will have to watch for a decline that challenges our “C” point, in this case 32.365. Friday’s selloff in silver was powerful and can be seen as a bearish impulse wave. Pivoteers should identify the slender coordinates of that pattern, do the math, and be aware of those downside targets along with the bullish ones described here. (Posted by Doug “harry” McLagan) _______ UPDATE (2:37p.m. EST): Traders who did the math had the opportunity to catch a bounce off of the bearish midpoint alluded to at the end of the tout. The prominent A point was Friday’s high of 33.740, and the midpoint of the pattern came in at 32.400 or 32.395, depending on how you chose to round the half-tick value. After a low of 32.385, the futures rallied to a high of 32.565, a nice multiple of the risk that would have been involved in the trade. The sibling “D” target of the pattern is at 31.710.
