December Silver advanced into a cluster of reversal dates (Tuesday, September 28 and Wednesday, September 29). Silver reached the reaction line price objective in concurrence with the reversal date cluster. This combination will typically have a strong influence on the next market direction over the short-term. Thursday—the “trail day”—began with a trade above the September 29thhigh, reaching 22.12 and testing the descending reaction line, before reversing and dropping over 50 cents in the next two hours. The price action has not formed into a sell pattern confirmation yet, but the “Action-Reaction” cycle suggests it is time to bank your gains or adjust your risk management accordingly beofre Silver makes a significant corrective pullback. www.tradersnetwork.com
