Silver has rallied off a low that didn’t quite make it down to a ‘D’ target, and that is slightly bullish. I’ve redrawn the chart to show the new downside target of a bigger pattern in order to provide counterpoint to a somewhat more bullish chart in gold (see above). To get a more balanced feel for bullion, we’ll treat this rally as a ‘mechanical’ shorting opportunity — either at the red line (22.65), or possibly the green (23.80). The first trade was elected last week and on Friday was slightly profitable. It would take a stop-loss at 23.42, although I’m not suggesting doing the trade belatedly. If the rally continues to the green line, the stop on a short there would be just above the ‘C’ high, at 24.95. We may attempt it, so stay tuned to the chat room. Short-term, your bias should lean bullish.
SIZ21 – December Silver (Last:22.53)