Silver’s chart offers more clarity and precise predictability than gold’s. It could not be clearer that the July contract will fall to at least d=28.815 before it finds traction. That Hidden Pivot can be bottom-fished aggressively when it is reached, but the futures should be traded with a bearish bias in the meantime. That implies that a rally to the green line (x=31.76) should be treated as a great opportunity to get short, but also that a drop to p2=29.799 be bottom-fished as avidly as d. ______ UPDATE (May 28, 2:26 p.m. EDT): So much for clarity! If anything is clear, it is that Silver’s moon shot today is so powerful that it could only be a rebuke to the scumbags who have suppressed its price for so long. They have papered the market to avoid having to supply quantities of physical that are even remotely commensurate with demand. It is a small market relative to gold — about one-tenth the latter’s size — but days like today cannot but fill gold bugs’ heads with visions of a runway bull market. The conspiracy against gold’s rise is a more powerful alliance, but their task will have grown more difficult if silver has broken from its moorings. For what it’s worth, July Silver triggered a ‘mechanical ‘short at x=31.76. But I am NOT recommending the trade for reasons that this update should have made clear. The signal looks quite promising, and so I’ll be interested myself to see whether the rally subsides somewhat shy of stopping out the bearish reverse-pattern’s ‘c’ high at 32.75.
SIN24 – July Silver (Last:32.09)