Silver ended its best week in recent memory at a level that appeared to exhaust the possibilities of a large, bullish pattern begun in October. It would be natural for the futures to pull back, or even to correct to as low as 23.23. That’s the Hidden Pivot target of this bearish reverse pattern, which has played out since last December. The futures would have to fall to the green line (x=26.52) for the pattern to be officially in play, but we can still watch for signs of tiredness in the way patterns both bullish and bearish play out on the lesser charts. Easy moves through midpoint resistances will be the best indicator of the trend, which has been tortuously upward for more than a year. It followed a powerful A-B impulse leg in 2020 that projects to 36.03. Here’s the chart, with a highly promising development from last week. _______ UPDATE (Apr 8, 1:28 p.m.): May Silver has overshot a major rally target at 27.54 by 65 cents, which is bullish. Accordingly, I have raised the ‘c’ high on the reverse pattern to 28.19, today’s so-far high, in order to reset the correction/sell-signal tripwire at 27.10. The new p support, a potentially opportune spot for bottom-fishing, lies at 26.00. ______ UPDATE (Apr 11, 9:51 a.m.): A new high at 28.65 has raised the theoretical ‘sell’ trigger to 27.56. I am not explicitly recommending a short sale there, just creating a signal to tell us when May Silver may have entered a corrective cycle with the potential to bring it down as much as an additional $3.29.
SIK24 – May Silver (Last:28.25)
