Silver 1 OZ 999 NY (XAG=X) fading as the U.S. stock market saw its indexes hit record highs
Gold and silver prices are moderately down in early U.S. trading Tuesday. The gold and silver bulls are fading this week as the U.S. stock market saw its indexes on Monday hit record highs, which is squelching demand for the safe-haven metals. December gold futures were last down $4.60 an ounce at 1,491.30. December Comex silver prices were last down $0.186 at $17.69 an ounce.
It’s a very big U.S. economic data week, highlighted by the Federal Reserve’s Open Market Committee (FOMC) meeting that starts Tuesday morning and ends Wednesday afternoon with a statement. It’s widely expected the Fed will cut interest rates by 0.25%. What is not so clear is the glide path the Fed will issue on future monetary policy moves. Look for active trading in the markets, including the metals, in afternoon trading Wednesday following the FOMC statement.
Also on Wednesday the gross domestic product report is out, and on Friday comes the employment report from the Labor Department. Other key reports are also out this week.
December silver futures bulls have the overall near-term technical advantage. Prices have been trending higher for four weeks. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $18.35 an ounce.
The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $17.44. First resistance is seen at the overnight high of $17.875 and then at $18.00. Next support is seen at the overnight low of $17.605 and then at $17.50.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 18.77.
The projected lower bound is: 16.87.
The projected closing price is: 17.82.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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 53.0903. This is not an overbought or oversold reading. The last signal was a buy 19 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 53.43. 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 38 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 69. 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 6 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.047 at 17.808. Volume was 8,900% above average (trending) and Bollinger Bands were 62% narrower than normal.
Open High Low Close Volume___
17.845 17.892 17.563 17.808 48,256
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.65 17.84 16.02
Volatility: 13 33 23
Volume: 4,826 965 241
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 11.1% 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 1 periods.