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Is Now the Time to Buy Gold and Silver for a Short Term Bounce?

Commodities / Gold and Silver 2018 Aug 17, 2018 - 08:20 AM GMT

By: Troy_Bombardia

Commodities

Gold and silver crashed yesterday, particularly silver.


Silver’s crash is particularly large. Silver immediately fell more than 3.5 standard deviations below its 20 daily moving average.

To put this into context, this has only happened 12 times (including yesterday) in the past 45 years.

So should you buy gold or silver for a short term bullish play right now?

Here’s what happens next to silver when it falls more than 3.5 standard deviations below its 20 daily moving average.

Here’s what happens next to gold when silver falls more than 3.5 standard deviations below its 20 daily moving average.

Conclusion

As you can see, gold and silver tend to make a short term bounce when silver makes a crash of this magnitude.

Treat this as a short term play instead of a medium term play.

Click here for more market studies.

By Troy Bombardia

BullMarkets.co

I’m Troy Bombardia, the author behind BullMarkets.co. I used to run a hedge fund, but closed it due to a major health scare. I am now enjoying life and simply investing/trading my own account. I focus on long term performance and ignore short term performance.

Copyright 2018 © Troy Bombardia - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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