We hit the support of the 61.8 on Friday (16.49$). We also tagged the the downtrend channel's lower and the 300 . (I changed the 200 to the 300 because in silver it seems to be working better.) In and TSI divergencies are started to be forming.
I closed 50% of my hedges in silver on Friday. Silver's intermediate rally topped on the 1st of July. We had a 4.5 months decline since that time and the pullback had erased the 61.8% of the previous rally. In the commodity complex this kind of pullback used to be enough in the past.
We have a very important and strong below this level : 15.98$. We needed 2 months to break this level at the beginning of this year. 15.98 is a multi year support. I will close the rest of my hedges if I have a confirmation that 61.8 FIBO was the bottom or if we have one more short drop down to 15.98$.
If we break significantly below 15$ - and testing the support of 14.6$ - that would be dangerous for this market.