Please look at the peak in prices as shown on the accompanying chart of Silver. At the top, we see a nearly perfect Bearish Engulfing Pattern (close enough that I will call it the Real Thing), a tall white bar having its last, dying fling, and a second Bearish Engulfing. Prices declined sharply thereafter.
Later in the slide, we see a Doji Shooting Star at the top of a small rise. It didn’t look very convincing, but look what has happened to prices since.
And to cap it all off, for the first time we think we see the emergence of a bearish Head & Shoulders Top formation. I’ve marked the Left Shoulder, the Head, and the Right Shoulder. The Neckline has not yet formed; and indeed it may not: prices may simply continue sliding lower without a pause.
However, if the Right-Shoulder-Side spotting point for the Neckline should form at or just below the thick horizontal line, then the forecast for Silver would be ominous: 792, round it to 800.
If we continue to see a waterfall of black Candlesticks, it won’t be very long before prices get there. I wouldn’t bet against it.
.,,.
William Kurtz
July 8, 2009
http://www.candelaabra.com
Please look at the peak in prices as shown on the accompanying chart of Silver. At the top, we see a nearly perfect Bearish Engulfing Pattern (close enough that I will call it the Real Thing), a tall white bar having its last, dying fling, and a second Bearish Engulfing. Prices declined sharply thereafter.
Later in the slide, we see a Doji Shooting Star at the top of a small rise. It didn’t look very convincing, but look what has happened to prices since.
And to cap it all off, for the first time we think we see the emergence of a bearish Head & Shoulders Top formation. I’ve marked the Left Shoulder, the Head, and the Right Shoulder. The Neckline has not yet formed; and indeed it may not: prices may simply continue sliding lower without a pause.
However, if the Right-Shoulder-Side spotting point for the Neckline should form at or just below the thick horizontal line, then the forecast for Silver would be ominous: 792, round it to 800.
If we continue to see a waterfall of black Candlesticks, it won’t be very long before prices get there. I wouldn’t bet against it.
.,,.
William Kurtz
July 8, 2009
http://www.candelaabra.com
