Nervous Investors Snap up Gold and Silver 1 OZ 999 NY (XAG=X)
Silver has steadied on Tuesday, after posting gains at the start of the week. Currently, silver is trading at $18.11, down $0.01 or 0.07% on the day. On the fundamental front, the U.S. releases ISM Non-Manufacturing PMI. The index continues to point to expansion in business activity, although the November reading dropped to 53.9, down from 54.7 pts. The December release is projected to accelerate to 54.5 pts.
Nervous Investors Snap up Gold, Silver
The U.S. airstrike which killed an Iranian general has unnerved investors, who have snapped up precious metals, which act as safe-havens in times of uncertainty. Silver gained as much as 2.5% on Monday, before retracting and surrendering most of these gains. Gold showed a similar trend and gained 1.0% on the day. Gold prices touched $1588 on Monday, its highest level since April 2013. With Iran promising revenge for the killing and President Trump saying he will respond to any hostile move by Tehran, silver and gold could continue to rack up gains this week.
Investors Eye Employment Data
Investors will be treated to a host of employment releases this week, which are important gauges of the health of the U.S. economy and could affect silver prices. On Wednesday, we’ll get a look at the ADP nonfarm payrolls, which dropped to 67 thousand in November. Analysts are expecting a strong turnaround in the December release, with an estimate of 160 thousand. On Friday, the U.S. releases official nonfarm payrolls, which is forecast to fall to 150 thousand, down from 266 thousand a month earlier. Wage growth is expected to rise to 0.3%, up from 0.2% in November.
Silver Technical Analysis
The forecast for silver remains positive. The symbolic level 18.00 remains relevant and is currently an immediate support line. Below, we find support at 17.50, followed closely by the 50-EMA line at 17.37. On the upside, there is resistance at 18.60.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 17.53.
The projected upper bound is: 18.89.
The projected lower bound is: 17.82.
The projected closing price is: 18.35.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 2 black candles for a net of 5 white candles. During the past 50 bars, there have been 29 white candles and 20 black candles for a net of 9 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 63.1367. This is not an overbought or oversold reading. The last signal was a sell 5 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 74.36. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 7 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 99. This is not a topping or bottoming area. The last signal was a sell 0 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 buy 17 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.203 at 18.345. Volume was 8,900% above average (trending) and Bollinger Bands were 32% wider than normal.
Open High Low Close Volume___
18.142 18.411 17.910 18.345 50,850
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.95 17.29 16.45
Volatility: 15 20 24
Volume: 5,085 1,017 254
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 11.5% above its 200-period moving average and is in an upward 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 into XAG= (bullish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 12 periods. Our momentum oscillator is currently indicating that XAG= is currently in an overbought condition.