Here is an hourly chart showing pit and electronic trading in July silver futures. (Ignore the big vertical lines on the chart - they are the result of data transmission errors.) I last commented on silver here.
I have been looking for a drop in silver to 1210 but I now think a more reasonable target for a three phase reaction is roughly 1100. This is the 3 and 1/8 multiple of the 351 low of 1991 and should be strong support.
So far the high in silver has been 1520. This is closer to the 3 and 3/8 mutiple of the 351 low than anything else, and for this reason I think the market has a good chance of moving up further to the much stronger resistance around the 1620 level which is the 3 and 5/8 mutiple of 351. If this view is correct I don't think the market will drop much below 1100.
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