|
Originally published March 21st, 2010 .
Silver never did confirm gold’s breakout to new highs, which has always been grounds for some caution. It has followed the path predicted in the last update to the letter, as can be seen on the older 6-month chart included beneath the current chart below, but has run into trouble this month at resistance at the underside of its earlier broadening channel. On Friday it broke down sharply from its steeper uptrend in force from early February in response to renewed dollar strength, a development which is viewed as decidedly bearish and constitutes a SELL SIGNAL, which would only be negated by a break above the trendline that capped the advance, which is now at about $17.70. This breakdown by silver clearly does not auger well for gold.
The latest COT chart for silver shows that the Commercials have been ramping up their short positions in recent weeks, which is viewed as another warning that we are probably witnessing a reversal to the downside now.
Clive Maund
clivemaund@gmail.com
****
© 2004 - 2010 Clive Maund. Legal & Disclaimer
for billing & subscription questions: clivemaund@gmail.com
for all other inquiries: support@clivemaund.com
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities.
Mr Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.
Although a qualified and experienced stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
|
