SIN26 – July Silver (Last:59.22)

I doubt that Silver can turn up meaningfully without first visiting the 53.86 secondary Hidden Pivot of the conventional pattern shown. We’ll make it our minimum downside objective, but let’s keep an open mind about the potential of this bounce. The first resistance comes in at 60.723, but an easy move through it would imply more upside is likely to as high as 65.750 over the near term. (Note: On September Silver’s chart, p2 and D lie respectively at 54.186 and 39.730. And here’s a tout I mistakenly prepared for the inconsequential August contract:  It ended the week tap-dancing on a crucial support at 68.75. That’s the midpoint Hidden Pivot of a pattern projecting to as low as 59.35.  The pattern looked like a bearish head-and-shoulders formation a week ago, but last week’s 19% slide turned the immediate picture even more bearish. Now, if the futures close below the red line for two consecutive days, it will significantly shorten the odds of a further slide to at least p2=64.05, or even to 59.35.)