Silver 1 OZ 999 NY (XAG=X) bullish due to so much in the way of uncertainty
Silver markets gapped a little bit higher during the trading session on Tuesday, but then turned around to fill that gap before rallying again. Ultimately, the market is bullish in general, due to the fact that there is so much in the way of uncertainty out there, and it gives us more or less a reason to start buying things to protect wealth, which of course precious metals fits quite nicely.
There are multiple central banks around the world looking likely to cut rates, that could of course drive money into precious metals. New buyers tend to come back into this market every time we pull back, so until this changes, I have no interest in trying to fight that rally. I also recognize that the $17.00 level above is massive resistance, an area that will attract a lot of attention not only due to previous selling pressure, but also the fact that it is a large, round, psychologically significant figure. I think we eventually break above there, but overall we will get the occasional pullback so I think it remains a short-term trader environment.
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 15.61.
The projected upper bound is: 16.94.
The projected lower bound is: 16.03.
The projected closing price is: 16.49.
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 16 black candles for a net of 18 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 64.8600. 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 63.61. 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 4 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 58. This is not a topping or bottoming area. The last signal was a sell 8 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 3 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.055 at 16.445. Volume was 8,900% above average (trending) and Bollinger Bands were 113% wider than normal.
Open High Low Close Volume___
16.420 16.507 16.330 16.445 15,702
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 16.40 15.44 15.15
Volatility: 18 19 18
Volume: 1,570 314 79
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 8.5% 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 into XAG= (bullish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 44 periods.