Monday, March 5, 2012

Clive Maund: Gold May Enter Bear Market After Massive High Volume Sell-Off

We mentioned Friday that even Dennis Gartman has been nearly convinced that Wednesday's $100 smash in gold thanks to a 3 million ounce sell order by a single trader was manipulative and not free market action.
Whelp, apparently good ole Clive cannot be added to the list of those who have finally seen the light, as Clive's latest suggests gold may well be headed for a massive bear market, due to the extreme drop on Wednesday accompanied with massive volume.  Yes Clive, the volume was massive, it was 3 million ounces dumped by A SINGLE TRADER in the span of 2 minutes!

Clive also must not have examined his own price chart, which clearly shows a flag formation for gold which has been broken to the upside and is now retesting the top of the flag, as well as an inverse head and shoulders formation, both of which are strongly bullish short term indicators.  But nope, gold is headed for a bear market because of a central bank 3 million ounce dump last Wednesday to prevent $1800 from being taken out.  lol.