In response to popular demand, I’m going to start tracking silver more closely. “There is a lot of talk on the Internet about silver going up a lot around mid-July,” a chat-room denizen averred on Tuesday. Although I’m not one to be influenced by blogger buzz, if Silver is in fact developing thrust for a moon shot, the evidence should soon become apparent on the intraday charts. Most immediately, that would imply a pop through the p=21.325 midpoint Hidden Pivot shown (see inset). That would open a path to at least 22.070 , its D-target sibling. Gold stalled on a spike Monday at an analogous p, but the fact that it didn’t get past it means silver and gold futures are on roughly equal footing at the moment on the bull/bear scale.
I’ve already stated that the turgid price action of the last week or so looks too much like a consolidation to suggest that anything but higher prices are coming. Those keen on catching the July contract as it leaves the launching pad will need to hunker down on the lesser charts to find a ‘camouflage’ opportunity. In that regard, yesterday’s high at 21.210 was bullishly impulsive, albeit very subtly so. I’ve identified the tradable ABC coordinates so that you can see just how subtle the opportunity was. Although the would-be trade failed to reach its D target, it did get to the midpoint pivot — a fact that would have made the subsequent relapse painless and cost-free for the nimble trader. Click here for a free trial subscription — no credit card necessary. This will give you access, for two weeks, to all member services, including timely trading touts and a 24/7 chat room that draws experienced traders from around the world.
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