July Silver’s weekly chart allows room for a 34% rally to 36.96. In order to extrapolate a comparable move in gold, we need the help of an extremely gnarly pattern on the continuous monthly chart that projects a 28% rally to 2995.00 (A= 681.00 on 10/31/08, B=2063 on 8/31/20). More immediately, July Silver’s correction from the 30.19 high recorded on April 12 appears bound for a minimum 25.90. (This would imply that gold’s correction has further to go.) The provenance of this target is shown in the thumbnail chart. The decisive downside breach of the rABC pattern’s midpoint pivot (28.04) implies not only that D=25.90 will be reached, but that an intervening rally to x=29.12 would offer a tempting opportunity to get short ‘mechanically’.
SIN24 – July Silver (Last:27.53)
