Since yesterday morning's pivot low at 24.44, right off of the August-November up trendline, the iShares Silver Trust (SLV) has climbed to 25.33, in what looks like the initiation of either of two scenarios. One would be a recovery or intervening upleg within a larger corrective, or digestion, period.

The other would be the start of a new bull leg within the ongoing bull phase that will propel the SLV to new highs well above 28.72.

In either scenario, yesterday's pivot low at 24.44 ended a 15% corrective leg and started a rally phase that has a minimum upside target zone of 25.90-26.20 in the hours/days ahead.

 

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