Shifting to the December contract, we see a compelling bearish pattern with the potential to take Silver all the way down to 17.135 before the two-month-old correction has run its course. That would completely erase the Brexit rally, but it is hardly a done deal at this point. In fact, although we should use the 18.178 midpoint Hidden Pivot support as a minimum downside objective for the time being, it is positioned to offer a very enticing bet for traders looking for a good spot to try bottom-fishing with a very tight stop-loss. If the bounce we might expect from this number goes on to exceed the external peak at 20.055 that I’ve labeled, it would be reason for shorts to dive for cover, since bulls by then will have regained control. ________ UPDATE (September 1, 12:01 a.m.): A pop today or tomorrow exceeding August 23’s ‘external’ peak at 19.220 would turn the short term picture robustly bullish. Otherwise, there is no change in the analysis given above.
