Sellers cracked a clear and compelling midpoint support with such force on Friday that we should assume August Silver eventually will make its way down to the 16.53 target shown in the chart (inset). For now, though, let’s use p2=18.06 as a minimum downside objective, even if the futures managed to close Friday above p=19.59. What would it take to mitigate the severity of this outlook? At the very least, I’d say a run-up exceeding 21.57, where a double-top was created on the hourly chart on, respectively, June 23 and 26. To be even more sure, we should stipulate that the rally hit 22.07, surpassing a peak recorded on June 16 just ahead of this continuing cascade.
SIU22 – Sep Silver (Last:19.855)