Silver

Silver's setback yesterday was not as painful as Gold's, and bulls will remain in command as long as there is not further slippage to beneath the 29.130 'external' low that I've highlighted on the hourly chart (see inset).  That would be bearishly impulsive, but even if it were to occur we could look forward to bottom-fishing at the 'p' midpoint of the hypothetical retracement pattern shown.  Alternatively, if bulls take this vehicle higher straightaway, there are numerous external-peak handholds to leverage on the hourly chart for purposes of getting long. _______ UPDATE (June 7, 7:11 p.m. EDT): Nothing to see here, folks.  Silver was building a distributive flag when we went to press, and a trader would probably need to be on the one-minute chart to extract something of value from current price action.

July Silver has gone bullishly impulsive in much the same way that Gold has on the intraday charts. The pattern shown projects to 29.465, a Hidden Pivot target that appears likely to be reached now that the futures have shredded its sibling midpoint at 28.710.  In the meantime, because the three peaks I've highlighted (see inset) are potentially usable for a camouflage entry, night owls should monitor this chart for the b-c pullback that would set up the opportunity.

Notice on the 240-minute chart (inset) that there are no fewer than four ‘external’ peaks that a point ‘B’ high could get between before pulling back to set up a long entry at ‘x’. This could spell opportunity for Pivoteers, since no rally-leg peak that falls shy of May 18’s 28.895 will be read as a breakout by our competitors.  I’ve highlighted a similar situation today in August Gold, so be sure to study this chart if you’re hankering to jump on either vehicle

After mucking around for three weeks, Silver's intraday charts went mildly impulsive with Friday's robust surge. However, bulls will have an excellent opportunity to shift into high gear when the new week begins, since it would require only a modest rally to blow past four prior peaks on the 480-minute chart (see inset). If and when this happens we can use the 32.280 midpoint resistance of the big pattern shown as a minimum upside objective for the next 2-3 weeks. More immediately, camouflage for belated buying will be difficult to come by following last week's impressive finishing stroke.  My suggestions is to leverage a b-c pullback from just above any of the several peaks discernible on the 30-minute chart going back to May 18.

No change. Buyers would need to push the July contract to 29.005 to get back in the game. Alternatively, a relatively small decline to 26.195 would re-activate an old target at 20.370. A potentially last-gasp rally to 28.985, a midpoint pivot, should be used by camouflageurs to get short provided entry risk can be held to a theoretical $70 per contract.

Silver continues to screw the pooch, ending Wednesday's session approximately where it was trading two weeks ago.  As noted here yesterday, it would take an upthrust to 29.005 for bulls to break the stalemate.  Alternatively, a bout of weakness would only have to hit 26.195 to put into play an old target at 20.370. That's the 'D' target of the big pattern shown, and a potentially last-gasp rally to the 28.985 midpoint pivot with which it is associated should be used by camouflageurs as an opportunity to get short, provided entry risk can be held to a theoretical $70 per contract.

Silver fizzled on the launching pad yesterday, unable to muster the energy required to get it to a modest rally target at 29.245. Still worse is that the July contract ended the day below the 28.165 midpoint support associated with that number, turning it into resistance. We'd need to see a print at 29.005 today to infer that bulls are not in a coma, but barring that, the downside threat looks no worse than the obvious structural supports that I've highlighted in red.  As of around 6:40 p.m. EDT, I could discern no compelling trading opps, although the short-term trend was impulsively bearish on the hourly chart.

Based on the hourly chart, I give bears a slight short-term edge in the duel of impulse legs that has played out during the last week.  However, if bulls are going to regain the offensive, we should see a tradable low occur at exactly 27.665, the p midpoint of the minor downtrend shown in the chart. You can bottom-fish two contracts there with a stop-loss as tight as three ticks, but if you use 'camouflage' and are able to identify an entry opportunity with no more than $70 of risk per contract at entry, you should go for it.  If the long position survives the night (or perhaps morning) and at least two subscribers report having done the trade in the manner suggested, I'll establish a tracking position for your further guidance. In any case, half the position should be exited at the p midpoint of the small ABC pattern used to make entry. ________ UPDATE (May 28, 11:51 p.m. EDT): The futures have suspiciously failed to surpass any external highs in ultra-thin, post-holiday trading. If they should surprise with an upthrust, however, the first hidden resistance where we should look for a stall lies at 29.245 (60m, A=26.730 on 5/16).  A decisive breach would imply bulls are gaining sufficient strength -- a possible enticement to alert camouflageurs (as well as a shot-across-the-bow of venturesome bears).

Index futures and bullion are going their separate ways early Thursday morning, presumably because gold and silver have some catching up to do following a short-squeeze that pushed the Dow to nearly unchanged after being down nearly 200 points intraday.