Silver’s chart is more bullish than gold’s, since the December rally exceeded an important external peak. This will allow us to attempt tightly stopped bottom-fishing at the 24.12 midpoint support shown in the chart, although we shouldn’t count too heavily on it to turn the futures around. An rABC set-up on the hourly chart can be used to initiate the trade, so nudge me in the chat room if it triggers on Tuesday and you need guidance. If the pivot is easily exceeded, that would imply additional downside over the near term to as low as D=22.25. _______ UPDATE (Jan 18, 11:46 a.m. EST): Silver’s Whoopee Cushion bounce Sunday night off a 24.04 low could have been worth as much as $5000 per contract to anyone who used this somewhat unconventional rABC set-up. Shifting ‘A’ to the visually more obvious low at 24.73 would have produced a winner as well, yielding a slightly larger gain. If you’re still aboard, caution is advised, since the rally, robust though it was, failed to generate an impulse leg on the intraday charts. That would require a print at 25.19, 17 cents above the so-far high. _______ UPDATE (Jan 19, 5:38 p.m.): The rally looks corrective, although a rally exceeding last Thursday’s 25.99 peak would turn it impulsive. ______ UPDATE (Jan 20, 7:57 p.m.): The plunge to the green line two weeks ago may have looked like a ‘mechanical’ buy, but I did not advise it because it came from a peak that fell just shy of p=28.30. Once decisively above this Hidden Pivot resistance, bulls would have a fighting chance of reaching 34.67.
SIH21 – March Silver (Last:25.87)