The selling has been so relentless over the last two weeks that even a dead-cat bounce might come as relief to shell-shocked bulls. If it happens, they ought not count too heavily on a sustained rally, since Monday’s dive did serious technical damage to the daily chart. Specifically, it exceeded March 15’s low at 16.890, creating the most menacing impulse leg silver futures have seen since December. It also exceeded the 17.110 midpoint Hidden Pivot support (p) shown, keeping a 15.494 downside target well in play. For bulls to get back in the game, they’d need to rally this brick to at least 17.335 [5/2 update: now 17.225] over the next 2-3 days. In any event, we’ll stay on the sidelines for the time being. _______ UPDATE (May 3, 8:14 p.m. ET): If bulls are going to mount a counterattack, their best opportunity will come at 16.302, the ‘secondary’ pivot of the pattern shown. The bounce would need to surpass 16.700, however, to be meaningful.
