Let me begin by saying that I have followed Clive Maund for years and I find him to be an excellent technical forecaster. This post is not meant to malign Clive or any technical analyst.
That being made clear, I take a position that to rely solely on forecasting by charts is flawed. The main reason exists in that the tape is painted to exhibit what they want it to show. Therefore it is not a true expos’e of what is actually occurring in the market.
On Friday, Feb. 2, silver was smashed by about 80 cents. Mr. Maund reported his forecast on Jan. 29, showing his reasoning why silver should be heading higher. Looking at the chart shown in this post, you can identify the head and shoulders pattern he is referring to. It clearly shows why he laid out his forecast. But Friday, due to them (market manipulators) wanting to end the week with silver below the $17 resistance level, silver was smashed. If you look at the volume, this is the red colored chart, you can see the high spikes corresponding to the dips in the value. These spikes show the manipulators dumping paper silver on to the market.
One further point I’d like to express is that even without manipulation, forecasting with charts is not an accurate science. They just indicate trends and trends don’t necessarily go they way you’d expect, there is a margin of error. This is due to the trend is based on human emotions. It is like them forecasting the likelihood of booming sales of the iPhone X. When they initially announced it the pundits were saying that it would be a successful launch. If you look at what is actually happening to the iPhone sales, they are tanking to the point where Apple has scaled back production. The reason I used the iPhone as an example is because I doubt that the iPhone market is not hounded by manipulators. Forecasting is based on your best educated guess.