Silver prices on the XAGUSD chart are lower today, despite a general fall in the US Dollar across board. The industrial metal failed to get sufficient uplift after mixed PMI results from around the world last week.
The US and China are still respecting many aspects of the Phase 1 trade deal, and China continues to purchase large volumes of agric products from the US. Demand for various commodities has started to pick up, but industrial activity continues to lag as per data released from the UK and Europe last week. The record contraction in GDP from industrial giant Japan also weighed heavily on silver prices. Silver price is currently trading at 26.532, or 0.77% lower as at the time of writing.
Silver price action on the XAGUSD daily chart shows a possible bullish pennant in evolution, with the current candle testing the 26.325 price support. Further bearish pressure could force a breakdown of that support line, which brings in 24.661 into focus as the next possible target. The 23.027 and 21.332 price levels form distant downside targets. A decline would invalidate the pennant, and the pennant portion of the pattern would then be considered as a triangle topping pattern.
Conversely, a bounce from the current support allows the silver price to aim for 28.073, with 29.873 forming the upside target that matches the 2020 highs. This high must be broken to the upside for a continued advance on the silver price. This advance completes the bullish pennant and allows silver prices to find a new price objective that matches the pole component of this pattern as 2020 winds down. This could take silver prices beyond the $30 mark. Whether this will happen this last trading week of August or not remains to be seen.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 29.64.
The projected lower bound is: 23.88.
The projected closing price is: 26.76.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 34 white candles and 15 black candles for a net of 19 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 27.3731. This is not an overbought or oversold reading. The last signal was a sell 10 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 56.70. 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 sell 10 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 -47. This is not a topping or bottoming area. The last signal was a sell 10 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 9 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.035 at 26.576. Volume was 8,900% above average (trending) and Bollinger Bands were 57% wider than normal.
Open High Low Close Volume 26.520 26.661 26.480 26.576 4,994
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 26.83 22.16 18.04 Volatility: 64 72 52 Volume: 499 100 25
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.
PREC.M.XAG= is currently 47.3% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume out of XAG= (bearish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 32 periods.