Silver outperformed gold last week with an impulsive rally that exceeded an imposing ‘external’ peak at 21.02 recorded on August 15. The December contract is still on track to achieve the 22.615 rally target noted here earlier, but it’s hardly a done deal. First a technical hurdle encountered at last week’s high must be cleared. Notice that the high occurred precisely at the green line (see inset), which lies at 21.31. That triggered a ‘mechanical’ short that would require a stop-loss at 22.81 (if initiated without ‘camouflage’). My gut feeling is that the stop will be hit, which would negate the mildly bearish implications of the stall. Alternatively, the ‘mechanical’ short would be the winner if Silver relapses to D=16.84. We should monitor the lesser charts closely in the meantime so that we don’t have to wait for the big move either way to determine which trend — up or down — is dominant.
SIZ22 – December Silver (Last:20.25)