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Silver
Ticker: XAG=
Price: $24.76
Silver Outlook
This is the question that many investors are asking. 2019 was a year of rebound for silver prices, which recovered the losses of 2018, closing the year up by about 7%. The white metal hit a three-year high at $ 19.57 and then settled in the range of $ 16.50 to $ 17.
The ongoing geopolitical conflict between China and the United States, the turmoil between the United States and Mexico, and tensions in the Middle East have contributed to silver growth over the course of this year.
Unfortunately, the gains were lower than those of gold. In addition, in 2019, the Fed cut interest rates three times, giving the precious metals a great advantage. In this context, silver prices touched the minimum of the year on May 17 ($ 14.38) and the maximum at the beginning of September ($ 19.57).
In addition, the gold-silver ratio has widened further, reaching a level that has not been seen for 20 years. This ratio has reached 90%, a frustration for those who have already invested but a real deal for those who have yet to buy.
Silver prices drop to $24.80, down 0.97% on a day, during early Thursday. In doing so, the quote part ways from the latest upside momentum that challenged the monthly high of Wednesday. What’s more important is the pair’s confirmation of a bearish chart pattern, rising wedge, on the hourly (1H) formation, amid the descending RSI.
As a result, sellers aim for the confluence of 100 and 200-HMA near $24.60 during the further downside.
In a case RSI remains well above the oversold conditions past-$24.60, the silver bears will initially target the $24.00 round-figure before looking towards the October 15 low around $23.60.
On the contrary, the metal’s rise beyond the $24.85 resistance line, previous support, will not only have to cross the previous day’s high of $25.28 but should also refresh the monthly peak, at $25.56 now, to convince Silver bulls.
Should that happen, the commodity prices can easily probe the early-September month’s low near $25.85.
Technical Indicators
Overall, the bias in prices is: Upwards.
The projected upper bound is: 26.71.
The projected lower bound is: 22.70.
The projected closing price is: 24.70.
Candlesticks
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
Momentum Indicators
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 76.2069. This is not an overbought or oversold reading. The last signal was a sell 7 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 50.74. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 20 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 80. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 11 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.310 at 24.760. Volume was 8,900% above average (trending) and Bollinger Bands were 48% narrower than normal.
Open High Low Close Volume 25.020 25.070 24.640 24.760 9,094
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 24.61 25.65 19.73 Volatility: 42 51 56 Volume: 909 182 45
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
PREC.M.XAG= is currently 25.5% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
Our volume indicators reflect very strong flows of volume out of XAG= (bearish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 34 periods.