July Silver futures tripped a ‘mechanical’ short last week similar to one in gold that went profitable the next day. The trade is predicated on a further fall to 19.64, but in theory taking a partial profit would be warranted at p=21.10. The initial move down to p breached this Hidden Pivot support but not by much, implying that the C-D follow-through leg currently in progress is less than certain to achieve the 19.64 target. We’ll be better able to judge the odds of this once we’ve seen the downtrend interact for a second time with the pivot. For now, though, you can use p2=20.37 as a minimum downside objective.
SIN22 – July Silver (Last:21.58)