Silver’s modest rally last week failed to trip a theoretical buy signal when it narrowly missed the green line (see inset). The impulse leg that cued up the pattern is legitimate and even compelling, however, and that’s why the resulting Hidden Pivot levels are likely to be useful for trading and analytical purposes once the futures have popped above x. The bull cycle is theoretically capped at D=24.45, but that doesn’t negate the possibility that bulls will shred the target and make a run for structural resistance around $27. ______ UPDATE (Mar 7, 5:19 p.m.): Do shakeouts really have to be as brutal as today’s kamikaze dive? It put in play a hitherto unthinkable downside target at 18.51 that can serve as a worst-case objective for the next 6-8 days. The way sellers pulped the red line (p=20.32) implies that the target, as painful as it sounds, is hardly a longshot bet. More immediately, the selloff should have little trouble reaching p2=19.42, a secondary Hidden Pivot that can serve as a minimum downside objective but also as a place to attempt cautious bottom-fishing.
SIK23 – May Silver (Last:20.13)
