I’ve used an unconventional ‘A’ high to project D=43.155 as a possible low for the bear market, but sliding it up to the 124.250 high recorded in January would yield a somewhat lower target at 39.730. Either could end the horrific slide that has wiped away 55% of silver’s valuation, and 30% of gold’s, since they topped in late January. I doubt that p2 (respectively 56.755 or 54.186) will ultimately arrest Silver’s slide, even though this ‘hidden’ support has put the futures in a go-nowhere dither for the last month. I should note that the two patterns have worked well for trading purposes, setting up a profitable short at the green line and another after Silver returned to the green line after a savage dip to 62.280 on March 23 low. This suggest they will both work for bottom-fishing.
When you plot the gold:silver ratio on a Hidden Pivot chart, it shows the ratio, currently 69, peaking at p=89. If Silver were to fall to 43.155, that would imply a low in gold at 3840, which is close to two targets I’ve flagged in the gold tout above. We won’t try to synch up all of the permutations, but the forecast of an 89 high for gold:silver should be held well in mind, since, as far as I’m aware, no other guru has attempted to predict its swings. Although it’s possible they lack the tools, I am confident in the Hidden Pivot Method’s ability to get it precisely right. _______ UPDATE (Aug 2): Like gold, silver’ price action last week was more boring than watching paint dry. The analysis above can therefore stand as given. _______ UPDATE (Aug 5, 9:33 a.m.): See my post just now in the Trading Room for a detailed analysis of Silver’s promising rally this week.