SIH12

Last week's rally was quite encouraging, since it exceeded three prior peaks on the daily chart.  Since there have been no B-C pullbacks yet, the impulse leg could conceivably surpass even more peaks before it takes a breather.  Night owls and camouflageurs should look for entry signals on the 3-minute chart or less.  As of this moment, there's a superficially enticing pattern developing on the '3'', but the ugly double-bar 'A' makes it less than opportune.

So far so good. Actually, yesterday's thrust was even more promising than it may have looked, since it cleared the external peak shown by one crucial dime. This is bullishly impulsive -- but also a possible camouflage entry set-up, since the peak failed to exceed the marquee high at 33.740 that most other traders will be focusing on.  Traders should wait for a legit B-C pullback to develop before initiating a buy-stop on a chart of (much) lesser degree.

No change. There are no rally targets worth mentioning right now, but any effort to get long at these levels is justified by the robustness of last Friday's impulsive thrust. Camouflageurs should do their stalking on the 15-minute chart, which is starting to accumulate a nice inventory of potentially useful internal and external peaks.

Yesterday's vicious chop was appropriate considering the obviousness of Friday's bullish enticement. There are no rally targets worth talking about at the moment, but any effort to get long at these levels is justified by the robustness of the impulsive thrust. Assuming you use camouflage, it will be easier to accomplish on a pullback that leaves a pitted trail of 'external' peaks similar to the one that has occurred earlier tonight (red arrow).  The 'external' peak  at 32.535 could conceivably work, but it looks like too big a leap to go unnoticed by other traders.

Silver's curiously steep trajectory on Friday pushed it past a few minor Hidden Pivots, but even if the forces driving the move were anomalous  -- a short-covering liquidation, for example -- they seemed powerful enough to get the March contract to December 2's key high at 33.740.  The bad guys would have no place to hide if that number is surpassed, but even before they panic, camouflageurs should prepare to leverage a B-C pullback from above the secondary peak at 33.300 shown in the chart. Any entry opportunities thereof would come, not from subtleties that only we understand, but from trading reflexes quick enough to catch a fleeting buy-stop at X.  Want to learn how to forecast and trade like a pro?  Click here for a free trial subscription to Rick’s Picks.

We'll use the 31.545 target of the pattern shown as a minimum upside objective for now, predicated on a close or decisive thrust above the pattern's 30.485 midpoint pivot. Night owls looking for a 'camo' entry opportunity should check out the following, incomplete pattern on the 10-minute chart: A=30.070 at 11:20 p.m. EST; B=30.255 at 12:10 a.m.; and C=?.

'Dueling' impulse legs on the hourly chart would seem to limit the immediate potential of tonight's already timid rally. It projects to 30.255, with a 'camo' entry signal at 29.875 that has already been triggered. The midpoint resistance lies at 30.000, and it is a bullish sign, at least for the very near-term, that this Hidden Pivot has been exceeded so far by three cents. Any progress above 30.255 would bode well for the coming days.

March Silver went impulsively bullish on the lesser charts late Thursday night, but this was after it achieved a 'D' target on a pullback. That suggests bulls will struggle on Friday and that any trades from the long side be done via a 'camouflage' entry that poses no more than $70 of theoretical risk per contract.  At exactly 1 a.m. EST, the three-minute chart showed an 'camo' pattern with a potential entry trigger at 29.985.  The coordinates are as follows: A=29.875, B=30.010, C=29.950 (Note: That last number is very tentative).  This set-up may be gone in five minutes, but I have presented it nonetheless so that you'll have an idea of what to look for if you want to get aboard tonight using charts of least-most degree.  Want to learn how we use Hidden Pivots and “camouflage” to reduce entry risk to relatively small change? Click here

The 31.030 rally target given here yesterday continues to serve as a minimum objective for the near term, but a close above it would augur more upside over the near term to as high as 32.145.  The effort so far this week has created a bullish impulse leg on the daily chart by surpassing an 'internal' peak at 29.740 recorded last Wednesday and an external at 30.210 from December 21, implying that any pullback that doesn't breach 29.210 to the downside would be setting up another rally leg. More immediately, night owls can use the pattern shown to try to get long. The entry signal has already been tripped at 29.930 on the '15', so you'll need to drill down to the '5' to get aboard belatedly.