The sketchy impulse leg shown in the chart yields a picture whose discouragements are congruent with June Gold’s. It is bullish overall, but the slight failure of the follow-through leg to reach the p midpoint resistance at 27.61 is telling. Strictly speaking, the futures did not trigger a ‘mechanical’ buy when they fell thereafter to the green line (x=24.58); nor did I suggest buying there. The question now is whether sellers will stop out the pattern’s ‘C’ low at 21.56, gratuitously or otherwise. My hunch is they won’t, but neither do I expect a robust recovery to p, let alone a move through it. We should keep an open mind nonetheless, since bullion has a nasty habit of looking like hell…until it doesn’t.
SIN22 – July Silver (Last:23.08)