Silver’s strong action since August 20 has it aiming for a target at 33.625, and probably higher. The precious metals were fairly quiet on Tuesday, with no new patterns of significance emerging in either silver or gold. The silver pattern that we are looking at here is similar but not exactly analogous to the one we described yesterday for the gold market, since the ‘A’ points are different. This is a judgment call prompted by the size of silver’s BC pullback, which was much shallower than gold’s. Shorting this market will be treacherous, but intrepid silver traders (is there any other kind?) might try it with a tight order pair around the target. The stop should be no lower than 33.660. (Posted by Doug “harry” McLagan)
