Bipolar analyst Clive Maund is at it again- the man who flip flops more frequently than a just reeled in steelhead today released an update stating "once support fails it's curtain's for silver, which can be expected to plunge into the high teens."
SD readers know that The Doc anticipated the latest correction in silver futures a week ago, but likely for vastly different reasons than Maund.
Some weeks ago in a Silver Market update we had noted that a large potential Head-and-Shoulders top area was completing in silver, but we got "thrown off the scent" by the positive Accum-Distrib line (now rapidly reversing) and the seemingly strongly bullish COT structure. In the light of the severe bearish breakdown by stocks indices last week this potential H&S top is now viewed as legitimate. Silver held up remarkably well last week considering what happened to gold, which is a straw that silver bulls are now clutching on to as evidence that silver is still in a bullmarket, but the reason that it held up so well is that it is close to a zone of strong support towards the lower boundary of the H&S top area. Once this support fails it's "curtains" for silver which can be expected to plunge into the high teens.
Looks more like a flag formation than a head and shoulders chart to me Clive, but I'm just The Doc.
The rest of Maund's piece can be found here: