Retrace Targets

We’ve just had an unprecedented launch to record levels, link here.

Eight trading days ago, price action pushed through levels not seen in two generations.

However, the next day, that all changed.

Looking at the front-month (December) futures contract SIZ25, price action itself, shows classic signs of a commodity blow-off top (not advice, not a recommendation).

Silver SLV, Daily

Price tends to go where there are transactions.

From the March lows in 2020, to the (potential) blow-off top, the majority of transactions took place in the 21 – 24, area (i.e., ‘Support Zone’).

Remember, there’s that $1-Trillion in margin debt, just waiting to be ‘called’ if not so already.

Silver could get to retrace levels quickly or not at all.

The market itself will let us know the most probable outcome.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279