There are numerous target projections that can be extrapolated from the chart shown (see inset), but we’ll use the one at 17.245 as a minimum downside objective because of the precise dance the futures have done above and below the 17.610 midpoint Hidden Pivot. That makes the red line a ‘mechanical’ short in theory, stop 17.735, but night owls should consider alternative entry tactics, since the implied initial risk would be more than $600 per contract. If the ‘hidden’ support at 17.245 gives way, look for more slippage to 17.160. That Hidden Pivot support looks enticing enough to bottom-fish with a stop-loss as tight as 4-5 ticks. ______ UPDATE (Apr 26, 7:09 p.m. ET): The futures rallied off a low that missed my downside target by 4.5 cents, but I don’t think buyers will get very far. Look for a relapse to 17.245 on Thursday, but if that Hidden Pivot support can’t hold, 17.160 would be the next stop. That looks like a promising place to try bottom-fishing, so I’ll recommend doing so, stop 17.145, if you’ve been short for at least a part of the ride south. Alternatively, buyers would need to hoist this cinder block above 17.625 today to suggest they’re capable of turning it around to end the week. _______ UPDATE (Apr 27, 10:57 a.m.): May Silver’s decline has overshot the 17.245 target given above by two cents this morning. Given the clarity of the pattern that produced the target, we should infer that even so slight a breach as this portends still lower prices. That would imply more slippage to at least 17.160, a Hidden Pivot support I’d also noted above. Alternatively, it would take a pop exceeding 17.540 to hint of a bullish turnaround. (Note: The equivalent target for the July contract is 17.230. Click here to see the chart.)
