Ordinarily I would suggest a ‘mechanical’ short on a rally to the green line (26.19), but there’s something so unappealing about this pattern that I’m more inclined to get long, provided we can find a proper set-up to do so. It’s not as though bears have shown much strength or enjoyed much success betting the ‘don’t pass’ line. The 24.04 ‘D’ downside target will remain theoretically viable nonetheless, but my hunch is that it will be negated this week with a push above C=26.91. ______ UPDATE (Aug 5, 10:52 p.m.): So far, my hunch has been wrong. Still, bears have no real power over Silver other than to bludgeon it do death for a couple of hours at a stretch, so I won’t get too exercised yet about the prospect of a full-blown sell-off to D=24.04. That doesn’t mean I am hankering to bottom-fish, however. ______ UPDATE (Aug 6, 10:34 a.m.): The futures have gotten pounded so hard today that the 24.04 downside target now looks very likely to be hit. Here’s a chart for those who enjoy bottom-fishing. I like the odds.
SIU21 – September Silver (Last:24.27)