Talk about overdone! I could have used a small a-b- segment to make trading the pending bounce less risky, but because the move higher is likely to exhaust the levels of the larger pattern, including its 35.205 target, I’ve featured the bigger picture. The futures could still work their way lower before turning around, but a voodoo number at 28.260 is the only spot that looks interesting for purposes of bottom-fishing. Otherwise, a ‘trigger’ rally to the green line should be regarded as a reliable signal of a reversal, even if it is too belated to get us in near the bottom. _______ UPDATE (Apr 7, 9:28 a.m. EDT): Based on an actual low at 27.545, the trade triggered at x=29.068 and produced a quick, relatively painless profit so far of $30,440 (!) on four contracts at p=30.590. Any contracts still held should use a 33,635 target. You can augment the position with a ‘mechanical’ bid at 29.068, stop 27.540. _______ UPDATE (Apr 9, 9:45 a.m. EDT): The May contract has stalled at the 30.590 midpoint Hidden Pivot associated with the 33.635 target furnished above. With gold soaring, the stall is unlikely to last. A pullback to x, especially if it comes from the sweet spot between p and p2, would generate a strong ‘mechanical’ buy.
SIK25 – May Silver (Last:30.300)
