Silver triggered a ‘mechanical’ short on Friday, although I’d advised paper-trading this one. I had to redraw the chart to discover that the short was more promising than it initially appeared. I hadn’t realized that the ‘B’ low exceeded the external low from June 2020, making the downtrend more powerful than I’d originally inferred from a cursory glance. In fact, the A-B leg was quite powerful, implying that December Silver will not be able to push above C=20.98 of the downtrending pattern and eventually will fall to D=16.355. Nudge me in the chat room on Monday if shorting silver appeals to you, since we may be able to ‘camo’ ourselves aboard belatedly with risk very tightly controlled as always. (I would not have recommended using a conventional stop above C in any case, since that would have implied more than $23,000 of entry risk on four contracts.)
SIZ22 – December Silver (Last:19.38)