The bearish pattern in December Silver’s chart, unlike gold’s, is ‘textbook’ and unambiguous, leaving little doubt that a decisive breach of p=22.26 would send the futures down p2=20.40 in search of a durable bottom. Any lower would put the pattern’s 18.55 ‘D’ target in play, but we’ll take this mini-bear market one step at a time. Friday’s precise bounce from p implies that the two remaining Hidden Pivot levels can be used to bottom-fish, presumably using an rABC pattern of small degree. Moreover, a rally from p or p2 cold set up an equally opportune ‘mechanical’ short. ______ UPDATE (Nov 30, 9:31 p.m.): Today’s chintzy poke to just below p=22.26 was not decisive, but the subsequent bounce will need to continue to at least 25.16 to take some pressure off bulls. _______ UPDATE (Dec 1, 9:27 p.m.): Shifting to the March contract, we can use the 24.78 ‘D’ of this reverse pattern as a minimum upside target for the near term. An easy move through it would be bullish, and levels x and p can be used enroute to fashion ‘mechanical’ bids or to paper-trade them just to stay closely attuned to the trend.
SIZ20 – December Silver (Last:23.94)