The pattern shown produced a textbook ‘mechanical’ short last week from x=22.14 and could deliver an equally opportune ‘buy’ if the May contract falls to the 20.15 target shown. It is commensurate with a 1774 target we’ve been using for April Gold. The implied selloff to D is not quite a done deal, however, since the futures have taken a so-far small bounce from p2=20.81, a logical place for a turn. I expect the downtrend to reach D, but we must still respect p2’s ability to reverse the tide.
SIK23 – May Silver (Last:20.93)