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Gold and Silver - Turning Bearish?

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The price action of both Gold and Silver do not look too good. Now I have mentioned this before and it may be totally coincidental every time but as Cryptocurrencies have generally gone up over the past 24 hours or so, Gold and Silver have declined.

 

I have no evidence but my 'gut' tells me that in terms of 'risk on / risk off' trading it could be that capital is being shifted from Gold and Silver back into Cryptocurrencies. It is merely a suggestion / opinion that I am presenting. This coincides with markets generally reacting to the recent correction where money is shifted from precious metals back into equities and generally more riskier investments than precious metals. 

 

This is very simplistic and I accept it is far more complex than what I have merely suggested and it would take a lot longer to post such complexities but if I ever have enough time then I shall certainly share my theories with the IG Community.

 

 

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Bitcoin and Crypto's in general up but Gold is going down and it hit $1225.89 today.

If you look at my post back on 7 February 2018 (above) then all one can do is observe just patterns and trends in real time as they happen. The media is bias and will not report on such things but we have eyes and a brain and we can see for ourselves what happens in real time. This is just another example. That does not mean it will happen everytime but it is worth monitoring.

There could be a trading opportunity of going long Crypto's and short Gold / Silver.

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If one looks at the price action and behaviour of Gold then it is a very profitable trade when shorting. As I have stated in may other posts in my experience during a downtrend so sharp as Gold's the timescale will be far shorter and action be far more violent when compared the to the upward trend historically for Gold. 

Here one needs to ensure it identifies any indicators which suggest a potential trend reversal. A trailing stop loss can help take any emotion out of the trade but at present there are no indicators for a trend reversal. In situations like this one must not exit too early and must ride the trend and maximise their profits. 

At the time of writing this post Gold has hit a low of $1218.45. The fear for the Gold Bulls are the $1128 level which could become a reality if $1200.00 is breached and there is a serious movement away from Gold and into the likes of Bitcoin. 

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thanks for this. made me look at gold. I've noted to check for $1168 for reversal/ go long.

 

Rgds

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@rimmy2000, no problem. 

Be careful in confirming any indicators for reversal and going long on Gold. 

The fundamentals for Gold and Silver going up are getting weaker in my personal opinion. Trump, North Korea, Russia, Brexit and Syria could not get Gold and Silver to shoot up. Are you aware of any strong fundamental drivers for Gold and Silver?

You may be able to trade Gold from a technical perspective and profit. I accept that but it will be tricky. 

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Just now, TrendFollower said:

You may be able to trade Gold from a technical perspective and profit. I accept that but it will be tricky. 

this would be purely a punt on a technical level at that price. Tight stop. See if it bounces, quick trade. Not looked in much detail yet but will be alerted if price is breached.

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@rimmy2000, what type of trader would you define yourself as? Momentum trader? Swing trader?

Punt on a technical level at that price cannot be a trend follower but I am interested in what principles you follow or adhere to on trading or investing?

Do you trade Cryptocurrencies?

 

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no, but I now have a Revolut card and account which allows for conversio into Crypto. I may end up buying a basket of really cheapy cryptos but I dont see myself din any more than that. I am too cautious to buy them on leverage.

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@rimmy2000,

Have a look at XBT Provider One products. I use them for long positions on both Bitcoin and Ether. You may find them interesting. 

There is a company crowdfunding at the moment called Glint. It is overfunding as we speak. It is not something that interests me as I am not a believe in Gold and Silver going forwards. I favour cryptocurrencies but you may want to have a look at it. They are looking at using users using Mastercard to pay for goods and services using Gold. 

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6 hours ago, rimmy2000 said:

no, but I now have a Revolut card and account which allows for conversio into Crypto. I may end up buying a basket of really cheapy cryptos but I dont see myself din any more than that. I am too cautious to buy them on leverage.

I haven’t had a good look into the Revolut offering but I do think on the surface it’s not too bad. For example if there are no holding costs then you mitigate wallet risk. You pay a premium on the spread probably (you can get commission free, 1cent spreads in the market) but if that ain’t too bad then go for it. 

Mid you want any more opinions or want to know more about the underlying  just let me know. Cheers. 

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I will reply to myself.

Yes, I do think $1200 is coming soon and is on its way for Gold. 

The key is not to be clever and try and go long on something seeking value and trend reversal without clear indicators to support any assumptions. 

One must not go against the trend and must just ride the trend until it naturally changes. The timescale will be the unknown so one must sit back and try not to be too clever.

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Could this be the next leg down for Gold? Cryptocurrencies are up! Hmmmmm.

An assumption one could make is that capital is being shifted from Gold to Cryptocurrencies like Bitcoin. This assumption needs to be tested with evidence or factual data but it is an assumption I am leaning towards nevertheless.

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It is a hard one to call as both Gold and Silver could continue their downward trend or there could be a sharp trend reversal.

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If Gold goes back to the $1175 area then there could be further downside.

It seems Silver is trying its best to hold on!

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