Let's notice that today's early weakness in the iShares Silver Trust (SLV) came right down to its week-long support line at 17.02, which contained the weakness, after which the price structure pivoted to the upside into a spike that is nearing a test of the 10-day resistance line, now at 17.48.

More importantly, perhaps, is the shape of the pattern that has been carved out since the October 13 high at 17.73, which looks like a coil within the upper 40% of the October price range. As long as the boundary of the coil remains in the upper 50% of the prior range, my work will remain "friendly," and potentially very bullish in anticipation of an upside thrust from the coil. If such a scenario unfolds, I will be expecting the SLV to climb to 17.90-18.10 thereafter.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.