We’ve got rally targets as high as 35.02, but for now we’ll use the pattern shown, with a 28.54 objective, to get a confident handle on risk management and entry tactics along the way. The ABCD here is similar to the one I’ve featured in gold, although Silver came to rest last week just beneath a midpoint Hidden Pivot resistance at 27.66 equivalent to one gold bulls were head-butting at the bell. Once past it, expect the futures to move easily toward 28.54. As always, a decisive push past it, especially on first contact, would imply the uptrend is likely to continue. _______ UPDATE (May 18, 7:32 a.m.): The July futures hit 28.54 as expected, then blew past it. Shifting the ‘A’ low downward yielded a somewhat higher at 28.93 to max out the minor cycle, but that target too was reached overnight. Silver has certainly earned a rest of perhaps 3-5 days, but if it blasts higher quickly after a shallow correction, here is the pattern that will be in play, with a 31.65 target. I have very high confidence in the target, but also in the pattern itself for purposes of generating ‘mechanical’ (or other) signals to trade the levels. _______ UPDATE (May 19, 10:17 p.m.): As implied above, a pullback to the green line (x=28.858) would trigger an enticing ‘mechanical’ buy, stop 23.91. Since entry risk would be more than $9700 per contract, we would need to create a ‘camouflage’ trigger to do the trade and reduce this by a much as 95% theoretical. If you care, make it known in the trading room if 25.858 is closely approached. Just to keep score, I will establish a tracking position regardless of whether subscribers are on board.
SIN21 – July Silver (Last:27.69)