The weekly chart makes a compelling case for more slippage to the 28.455 target we’ve been using as a minimum downside projection. The initial penetration of p=31.763 was decisive, and the subsequent selloff exceeded p2=30.109. This implies that we should short x=33.416 ‘mechanically’ if a rally reaches it. There would be $5 potential in any subsequent drop, one of the juiciest trades we’ve seen in a long while. Profit aside, my point is that even a strong rally right now should be viewed with caution, if not outright skepticism. If you want to get long in the meantime, I’d suggest using the d target of a reverse pattern on the 60-minute chart or less.
SIZ24 – December Silver (Last:31.405)
