As long as silver (SLV) lurks here at the neckline on this chart from last week’s update, this precious metals leader is still in the game. The neckline (green dashed line) to the little Inverted H&S pattern (black arrows) coincides with the November-January cluster of support that was broken before the little H&S took it back (however temporarily).
While the preferred correction target has been the top of the May-June (2022) cluster, which silver/SLV did not quite reach, we have to go by what we see, technically. What we see is a pattern that could still be eyeballing the upside gap (as per the original update), if not an end to the correction.
With CoT not yet complete to a low risk alignment and the macro noisy this week, I’d like a nice neat tap of the downside objective around the SMA 200. But with FOMC on tap and gold having little room to drop vs. SPX we can also be aware that there is a lot of energy in play this week, and anything can happen.
Bottom line here, however, is that if SLV/Silver lose the neckline we’d be back on the downside watch. If it holds, look for the area of the gap fill, which the original update noted would be in the 25.60 area for silver.
