Silver’s chart differs bullishly from gold’s in one subtle respect: the 27% rally from December’s $22 low slightly exceeded a technically important ‘external’ peak. This created an encouraging impulse leg that has survived a pullback so far to 24. The selloff did not generate a ‘mechanical’ buying signal, however, because the peak of the rally narrowly failed to hit the red line as required. We are therefore left on the sidelines for the time being, rooting for silver while awaiting a better opportunity. It could conceivably come in the form of a ‘mechanical’ buy on a correction of a rally to around 28. Stay tuned if you’re interested. _______ UPDATE (Jan 26, 8:41 p.m. EST): A Hidden Pivot support at 24.73 is equivalent to the one in March Gold that I’ve suggested bottom-fishing with the tightest stop-loss you can handle (30-min, A=26.73 on 1/8). _______ UPDATE (Jan 27, 8:48 p.m.): The futures trampolined 75 cents after bottoming a penny-and-a-half below my 24.73 target. If you’d bottom-fished there as I’d suggested, the trade would have worked with a stop-loss as tight as two cents and would have reaped a gain of as much as $3,750 per contract. _______ UPDATE (Jan 28, 9:42 p.m.): Although gold barely merited a yawn today, Silver popped through p=26.21 in this chart with such brio that more upside to at least D=28.39 appears likely over the next 2-3 days.
SIH21 – March Silver (Last:26.32)