The small bullish pattern at the rightmost edge of the chart projects to 29.02, but a much larger pattern begun from 17.62 in June is reinforcing it. The latter has a target at 34.67 with critical resistance at p=28.30. In the days ahead, the most bullish thing that could happen would be a two-day close above 27.03, the midpoint Hidden Pivot of the small pattern tied to D=29.02. Stepping back for a look at the big picture, a two-day close above 28.03 would shorten the odds of a push eventually to 34.67. In the meantime, the small pattern can be used to get long ‘mechanically’ on a pullback to the green line, x=26.04. However, I’d make the trade conditioned on the pullback coming from the ‘sweet spot’ around 27.65. _______ UPDATE (Jan 7, 11:21 p.m. EST): The ‘mechanical’ set-up has continued to ripen and remains viable, bidding 26.04, stop 25.04. The opportunity is less than stellar because the A-B leg is not truly impulsive. However, if the futures were to fall sharply to the green line, that would improve the odds for a winner. _______ UPDATE (Jan 8, 9:18 a.m.): The little POS rallied 62 cents from within pennies of the x=26.04 line where I’d suggested placing a mechanical bid. This could have been worth as much as $2600 per contract overnight, but I assume the 26.09 low put it just out of reach. An rABC entry, which does not require contact with the green line, would have triggered at 26.29. That’s with (on the 30-minute chart) A=26.70 on 1/6 at 11:30 a.m. I am not suggesting that the trade be re-entered if Silver relapses, so cancel the order.
SIH21 – March Silver (Last:27.16)