Silver 1 OZ 999 NY (XAG=X) a lot of concerns out there about global trade and global economic growth going forward

Silver 1 OZ 999 NY (XAG=X) a lot of concerns out there about global trade and global economic growth going forward

Silver markets rallied significantly on Thursday, reaching towards the $14.60 level, but it’s very likely that we will find sellers above at the downtrend line that I have marked on the chart. The $14.85 level is also resistance, and I think it’s only a matter time before we see signs of exhaustion that come into the market.

At that point, I am more than willing to start selling again as I believe that silver markets are destined to go much lower. That being said, there is always the alternate case that you need to keep track of it as well.

That alternate case would be a daily close above the $14.85 level, and then perhaps the $15.00 level. If we break above there, then the market is very likely to continue going higher. However, I think it’s very unlikely to happen, and I think this will more than likely be a nice selling opportunity as we not only have the down trend lines and previous support and resistance, but we also have the 50 day EMA just above as well.

This is a market that has been selling off for quite some time and I don’t think that changes in the short term as silver has the misfortune of not necessarily being a safety commodity, but more of an industrial one these days, and of course there are a lot of concerns out there about global trade and global economic growth going forward.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 14.98.

The projected upper bound is: 14.94.

The projected lower bound is: 14.25.

The projected closing price is: 14.60.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 6 white candles and 3 black candles for a net of 3 white candles. During the past 50 bars, there have been 28 white candles and 20 black candles for a net of 8 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 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 38.6744. This is not an overbought or oversold reading. The last signal was a buy 1 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 42.97. 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 3 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 -49. This is not a topping or bottoming area. The last signal was a buy 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 sell 5 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.165 at 14.610. Volume was 8,900% above average (trending) and Bollinger Bands were 2% narrower than normal.

Open High Low Close Volume___
14.390 14.643 14.380 14.610 13,960

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 14.60 14.98 14.90
Volatility: 14 15 18
Volume: 1,396 279 70

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 2.0% below its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect very strong flows of volume into XAG= (bullish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 59 periods.

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