Silver 1 OZ 999 NY (XAG=X) Falls as on Demand Fears
Silver markets did very little during the trading session, which is quite interesting considering the stock markets around the world are collapsing. This suggests that perhaps people are starting to look at the industrial component of silver just as much as it is the precious metal component. At this point, I believe that silver does favor the upside longer-term, but obviously we have a lot of issues to work through right now. The 50 day EMA certainly looks as if it is offering a little bit of support, as it typically will. Underneath, the $17.50 level underneath should offer quite a bit of support.
All things being equal this is a market that has plenty of support underneath, not the least of which will be found at the $17.00 level as it is a large, round, psychologically significant figure, and of course the scene of the 200 day EMA. This means that the market is probably going to continue to respect that area but if we did break down below the $17.00 level, then it’s likely that the market goes looking towards the $16.00 level next. That would be the beginning of a major “risk on” type of move in my estimation, something that doesn’t seem very likely in this environment. That being said, the most important thing about the market is its price, so you would have to listen to it. I think we are much more likely to see a bounce from here than anything else, reaching towards the $19.00 level.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 17.75.
The projected upper bound is: 18.33.
The projected lower bound is: 17.02.
The projected closing price is: 17.67.
A black body occurred (because prices closed lower 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 29 white candles and 20 black candles for a net of 9 white candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 8.6215. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 2 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 44.86. 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 36 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 -41. This is not a topping or bottoming area. The last signal was a sell 2 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 0 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.221 at 17.662. Volume was 8,900% above average (trending) and Bollinger Bands were 18% wider than normal.
Open High Low Close Volume___
17.883 18.131 17.600 17.662 39,084
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 18.10 17.86 17.00
Volatility: 28 23 25
Volume: 3,908 782 195
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 3.9% 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 5 periods.