Silver has pulled out of a steep dive that retraced more than 80% of the rally begun in mid-November from 22.26. We are likely to know soon whether the reversal is capable of achieving the 26.865 target shown, since a crucial resistance lies just above in the form of a Hidden Pivot midpoint resistance at 24.82, As always, an easy penetration of this obstacle, or better yet two consecutively weekly closes above it, would suggest bulls are back in charge. This seems very likely because the impulse leg that drove the futures to their most recent high at 26.34 surpassed two ‘external’ peaks and one ‘internal’ without taking a breather.
SIH24 – February Silver (Last:24.15)