With a worst-case projection of 3.84, SIL became a ‘mechanical’ short when it rallied back up to p2=7.10 three weeks ago (see inset) after initially exceeding this Hidden Pivot support to the downside by more than a dollar. The very bearish target is not chiseled in stone, but it would take a upthrust exceeding 9.43 for this ETF for silver miners to get out of trouble. The daily chart is in fact bullish, however, and should be traded with a bullish bias. I have emphasized the bearish case over the bullish nonetheless because, given the look of the weekly chart, it carries more weight. ______ UPDATE (Saturday): I neglected to consider a potentially important Hidden Pivot support at 6.31 that could reverse SIL’s steep decline, if only temporarily. Friday’s low at 6.35 came close enough to the target for us to consider it achieved, but if it is exceeded by more than 10 cents, or if SIL closes below it, that would signal more downside over the near term to at least 5.46. The new chart shows the pattern associated with these hidden supports._______ UPDATE (November 16, 11:25 p.m.): The 6.31 pivot has held so far, but only barely, with a so-far low at 6.23. The rally since has been timid and would need to push above 6.75 to be taken seriously.
