first majestic silver

Gold Market Update

Technical Analyst & Author
September 17, 2006

Failure of support in the $600 area has led to gold dropping back into the target zone for this move - the $560 - $580 area. It is regarded as a trading buy here for a probable trading bounce back towards the underside of the earlier support, which is now resistance, i.e. back to the $595 area, which is likely to occur within the next 2 to 3 weeks. Longer-term it is expected to back off again and dig deeper into the support zone over the next month or two, a good point for it to bottom being in the $540 - $560 zone, which should mark the completion of the corrective phase in force from May.

 

Silver Market Update

Clive Maund

Silver did its duty and plunged upon breaking down below the support in the $11.75 area. This drop brought it back to the target given in the last update, at $10.50, which it fell to intraday on Friday. Over the short-term, a period of up to 3 weeks, silver is expected to bounce, possibly as high as about $11.60, this being the underside of the former support that is now resistance. Beyond that, over the next month or two, it is expected to go into retreat again and dig deeper into the current support zone, possibly dropping as low as the $9.50 - $10.00 area. This should mark the end of the corrective phase in force since May.

 

Clive Maund, Diploma Technical Analysis

[email protected]

www.clivemaund.com

Kaufbeuren, Germany, 17 September 2006

Clive Maund

Clive P. Maund’s interest in markets started when, as an aimless youth searching for direction in his mid-20’s, he inherited some money. Unfortunately it was not enough to live a utopian lifestyle as a playboy or retire very young. Therefore on the advice of his brother, he bought a load of British Petroleum stock, which promptly went up 20% in the space of a few weeks. Clive sold them at the top…which really fired his imagination. The prospect of being able to buy securities and sell them later at a higher price, and make money for doing little or no work was most attractive – and so the quest began, especially as he had been further stoked up by watching from the sidelines with a mixture of fascination and envy as fortunes were made in the roaring gold and silver bull market of the late 70’s.

Clive furthered his education in Technical Analysis or charting by ordering various good books from the US and by applying what he learned at work on an everyday basis. He also obtained the UK Society of Technical Analysts’ Diploma.

The years following 2005 saw the boom phase of the Gold and Silver bull market, until they peaked in late 2011. While there is ongoing debate about whether that was the final high, it is not believed to be because of the continuing global debasement of fiat currency. The bear market since 2011 is viewed as being very similar to the 2-year reaction in the mid-70’s, which was preceded by a powerful advance and was followed by a gigantic parabolic price ramp. Moreover, Precious Metals should come back into their own when the various asset bubbles elsewhere burst, which looks set to happen anytime soon.

Visit Clive at his website: CliveMaund.com


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