Silver has pushed marginally above a three-month consolidation range, signaling minimum upside to a 26.66 target broached here earlier and shown in the chart. It is the terminus of a small, bullish pattern that has taken three weeks to play out. A move decisively exceeding the target would put the 28.30 midpoint Hidden Pivot of a much larger pattern in play. It is also shown in the chart and correlates with a D target at 34.67. I expect the lower resistance to be tested, but notice how that would put the March contract slightly above a cluster of ‘external’ peaks recorded in September. The result would be an impulse leg of significant decree. Overall, the picture suggests that minor things are happening now that could easily turn into major things. _______ UPDATE (Dec 21, 6:30 p.m. EST): Bulls impaled the 26.66 pivot, putting p=28.30 in play as a minimum upside target for the near term. _______ UPDATE (Dec 22, 11:12 p.m.): Silver’s two-day slide is more worrisome than gold’s, hinting of more downside to at least p2=24.929, or d=24.300 if any lower. Both are correcting strong impulse legs, however, so bulls should be given the benefit of the doubt for now. ______ UPDATE (Dec 23, 9:30 p.m.): Midgets duked it out with no clear winner, although the good guys were able to turn the futures higher from well above 24.92 benchmark cited above. This is faintly encouraging, but I wouldn’t hazard much more than that predictively. However, a decisive thrust above 26.28 would hint of a break in the tedium.
SIH21 – March Silver (Last:26.01)
