SIK12

For Silver to get in bullish gear with Gold, and to confirm bullion's strength, the May contract will need to take out the 32.435 'external' peak recorded last Wednesday on the way down. Otherwise, jeopardy will remain to the 29.975 target of a larger, downtrending pattern begun (on the 60-minute chart) with March 11's 34.410 high (a one-off).

May Silver appears to be consolidating just above the 31.750 midpoint pivot of the pattern shown, implying it is staging for a fresh thrust to 32.190, its 'D' sibling.  The best potential opportunity for getting long via camouflage lies with the tiny 'external' peak at 32.010 recorded Sunday night on the way down.  A B-C pullback from just above it could set up the trade.

I've suggested using the uptrend to get long via camouflage in June Gold, but because Silver's trajectory looks harder to leverage, I'll recommend bottom-fishing two contracts at the 31.665 midpoint support shown. (Note: This could change if 'C' goes higher.)  A three-tick stop-loss would keep theoretical risk close to our allowable limit on entry of $70 per contract, and while this might be cutting it too close, a 'camo' entry here would not be able to do much better. _______ UPDATE (12:33 a.m. EDT):  Sellers ignored the support, stopping out our position for a loss of $75 per contract. The easy move through 'p' telegraphed the weakness that was to follow.

I see downside risk over the near term to as low as 29.940. To come up with this target and a compelling pattern, I took as its point 'B' the first low to breach last January's 31.600 bottom. That is the second most important 'external' low on the chart, after mid-February's 32.715, and that's why I consider 31.090 worthy of anchoring this bearish picture as its point 'B'.  All of this is more easily imbibed visually, so I'll suggest taking in the accompanying chart in a glance.  Most immediately, if further selling awaits, it should be telegraphed via corrective rallies that do not reach their 'd' targets.

A 33.730 rally target identified here yesterday remains valid in theory, but as a practical matter and for the time being, we ought not pay it much mind. Instead, I'll recommend bottom-fishing at the 31.855 downside target of the pattern shown. This Hidden Pivot is nicely located in the middle of nowhere, just as we like 'em,  but camouflage should be used nonetheless to reduce risk.  Using a chart of 5-minute degree or less, camouflageurs should start looking for an uptrending abc reversal to leverage if and when the futures come down to 31.875.  I'll establish a tracking position for your further guidance if 1) the perfect entry opportunity arises; and 2) someone in the chat room reports actually having done the trade.  Click here for information about the upcoming Hidden Pivot webinar and a coupon good for a $50 discount.)

Silver vaulted energetically past the 32.680 midpoint resistance shown in the chart, implying that its 'D' sibling at 33.730 has become an odds-on bet. Camouflageurs should look for a handhold by way of a B-C pullback that occurs relative to any one of the external peaks recorded in mid-March on the way down.

Having opened higher on a modest gap Sunday night, the futures have yet to pull back to the 32.400 'window' line where they would presumably be recharged for a follow-through thrust of as much as 44 cents.  Camouflageurs can buy two contracts at the first signaled 'X', but you'll need to locate the trade in a time frame that would subject you to theoretical entry risk no greater than $60 per contract.  I will establish a tracking position 1) if such an opportunity has in fact occurred, and 2) someone confirms having done the trade in the chat room.  The added incentive to get long here is that you may be catching a ride on the larger uptrend begun Thursday from 31.640 and targeting 32.990.

Bulls and bears are well paired at the moment in the duel shown in this 480-minute chart, but the former will need to push past the 32.680 midpoint resistance before the futures would become a solid bet for long-side camouflage. Worst case in this time frame is a 'D' Hidden Pivot at 29.835, predicated on a decisive breach of its midpoint sibling, 31.510.

The selloff from highs achieved in the wee hours put the hourly chart in 'dueling' mode, but bulls still held an edge Tuesday night, since the rally was more impressive than the pullback that  has occurred thus far.  From here, with a prospective 'C' low at 32.480, it will take at 4.68-cent booster rally to get this vehicle off the launching pad.  Traders should look to get long on the three-minute chart (or less) if the implied entry trigger at 32.775 is hit.  That number would of course change if point 'C' doesn't survive.