Like the bounce in gold, silver’s rally is suspect because it follows a death-dive that breached two major lows recorded in the final quarter of 2020. That implies the bounce, now in its second week, is corrective, although not quite necessarily doomed. Indeed, it would hardly be unusual for a rally with legs to develop following a dip beneath a support that too many bulls were counting on, as has surely occurred here. However, because quite a few of them will have been stopped out, silver should be sufficiently lightened of profit-takers to climb like an F-22 Raptor. So far, except for the first day’s bounce from the low, that has not been the case. But because the rally accelerated as the week ended, we’ll give it the benefit of the doubt for now. I will connect up some ABC dots if and when the bounce either surpasses some minor ‘external’ peaks on the intraday charts (the first lies at 24.38), or tops and relapses.
SIU21 – September Silver (Last:23.78)