$SIZ23 – December Silver (Last:25.05)

Silver’s chart, although clearly bullish, has all the problems of gold’s and then some. The pattern that produced the 24.955 target has a dubious impulse leg that failed to surpass any ‘external’ peaks. Also, there is an authoritative trendline just above last week’s highs that is not likely to be a pushover. And finally, the futures spent the last two days of the week head-butting a secondary pivot at 24.20 that refused to give way. My gut feeling is that the target will be achieved anyway, but I’ll wait for the futures to push above some daunting ‘external’ peaks recorded in July and August before we break out the bubbly. _______ UPDATE (Nov 24): Silver’s chart handily outperformed gold’s last week, shortening the odds of a further push to the 24.955 target given above. What happens after that will be crucial to the intermediate-term picture, since an ‘external’ peak at 25.425 recorded on August 30 will beckon a test of buyers’ enthusiasm.  ______ UPDATE (Nov 28, 4:30 p.m.): Helped by last week’s wicked upthrust, the December contract today hit and then exceeded the 222222224.93 target shown. It is slightly lower than the one given here previously, but the pattern to which it is tied is sufficiently compelling for us to infer the small overshoot of the target on the close portends even higher prices this week. Look for a push above August 25.035 peak, but with some potential rally-stopping ‘voodoo’ resistance prices between here and 25.68.