Earlier, I’d hung out a long-term chart to show how Silver could fall to as low as 10.82 before the bear market has run its course. More immediately, however, there is jeopardy to 14.06, a Hidden Pivot target that will become an odds-on bet if the September contract cracks p2=14.52 by more than a few pennies. The futures were a spec buy Monday on the bounce from that number, but because the rally is so precarious, I’d suggest taking a partial profit on the small bounce that has occurred so far. The pivot at 14.06 looks likely to provide a precise bounce, and it can therefore be bought aggressively if you’ve been short on the way down. ______ UPDATE (July 26, 2:15 p.m. EDT): Like gold futures, September Silver has reversed from a low that did not quite achieve an important Hidden Pivot target — in this case, 14.06, derived from the daily chart. This is tentatively bullish, and it would become significantly moreso if buyers are able to drive this vehicle above July 20’s 14.980 peak in the next day or two. (See inset, a new chart). _______ UPDATE (July 27, 5:51 p.m. EDT): Monday’s clueless dithering did nothing to strengthen the bullish case for the near term. If Silver goes lower, use the three levels shown in the chart to gauge weakness: p (14.275), p2 (13.923) and D (13.570). As always, a decisive breach of one would imply more weakness to the next. Alternatively, a pop exceeding 14.960 would put bulls back in charge, at least for the time being.
