Last week’s funeral procession turned p=19.59 from support to resistance, offering scant hope for a turnaround any time soon. It will come sooner or later, of course, since the futures have been falling hard for nearly three months. But the chart suggests the September contract must come down to at least p2=18.06 before bulls can come out of hiding. As always, a decisive move through p2 on first contact would suggest a feint toward D=16.53, if not necessarily a washout to it. Alternatively, a rally to x=21.12 (i.e., the green line) might seem enticing, but it would in fact trigger a quite promising ‘mechanical’ short (stop 22.66).
SIU22 – Sep Silver (Last:19.23)