Silver Price Extremes!

To identify ‘buying opportunities’ in ‘extreme’ situations, we identify historical extreme situations and use them for a benchmark. Provided that a correction occurs in an active bull market, the insights from this kind of analysis can be very helpful.
Most should agree that the credit crisis was a major economic event that pushed nearly all assets down to an extreme low. We have used this kind of extraordinary market action as a comparison for the current commodities correction.

In the above chart we simply measured the percentage drop of the current correction and compared it to the extreme drop back in 2008. Based on this chart it is safe to say that the current correction could be considered extreme.

This post was published at SilverSeek on November 7th, 2014.