Silver futures (symbol: SI) have experienced a large, yet choppy, sell off from its $49.82 high of Apr11. The movement down to $18.185 in Jun13 represents a 76% retracement, a common retracement target. The Jun13 retracement also tested, and failed to penetrate, the long running downtrend line from the Apr11 high.
Consolidation could be complete at the $18.185 level. Failure to hold the $18.185 level suggests a test of the $8.40 low from Oct08. Successful support at the $18.185 level suggests trade back into the $26-36 range.
Murphy & Co’s Silver model currently holds a short Silver Futures (symbol: SI) position.