When Silver reversed two weeks ago after having breached two key lows from Q4 2020, we should have expected the bounce to be a doozy, since many bulls would have been stopped out near the bottom. Instead, we got a rally that has died after just a week, and now a downtrend that looks likely to test the old low. We should know soon whether it will reach the 20.16 target of this lesser pattern, but in any event, there are likely to be several enticing opportunities to bottom-fish on the way down: at 22.06, 21.72 and of course 20.16. All three of the Hidden Pivots can be used with a limit bid and a super-tight stop-loss, but an rABC set-up would be best. ______ UPDATE (Aug 23, 11:06 p.m.): If Silver takes out the point ‘C” high of the pattern shown, that would negate our bottom-fishing strategy. ______ UPDATE (Aug 24, 6:10 p.m.): Ha-ha, how cute. The futures stuck their grubby little snout two pennies above ‘C’, then barely retreated. I won’t comment on what this might mean because I don’t exactly know, but it seems a tad bullish, no?
SIU21 – September Silver (Last:23.87)