Silver 1 OZ 999 NY (XAG=X) finds support
Silver markets initially fell during the trading session on Monday, breaking down below the $15.25 level. Ultimately, this is an area that extends down to the $15.00 level, an area that was the beginning of a massive gap. By doing so, it looks as if the market is going to find buyers on this move, and I believe that the $15.00 level could be a bit of a “floor” in the market, defining it as being in an uptrend.
This makes sense, considering that the Federal Reserve is looking likely to cut the interest rate in the United States, so that makes sense that the precious metals sector should continue to do relatively good as they are priced in those US dollars and of course inflation could become a problem down the road. With central banks around the world all cutting interest rates, it gives us a little bit of a boost, so we could see a rather large move over the next several months.
To the upside, I believe that we are going to go looking towards the $16.00 level, perhaps even higher than that. This doesn’t mean that we are going to go straight up in the air, but it’s very likely that the pullbacks will continue to offer nice buying opportunities. I have no interest in shorting this market, as the fundamentals behind the central banks around the world continue to support precious metals overall. Beyond that, the $15.00 level was a significant level of resistance to break above.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 15.02.
The projected upper bound is: 15.53.
The projected lower bound is: 14.75.
The projected closing price is: 15.14.
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.
An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend (which appears to be the case with PREC.M.XAG=). It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend, it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.
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 29.0603. This is not an overbought or oversold reading. The last signal was a sell 4 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 54.38. 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 6 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 19. This is not a topping or bottoming area. The last signal was a sell 3 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 22 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.172 at 15.135. Volume was -0% below average (neutral) and Bollinger Bands were 32% wider than normal.
Open High Low Close Volume___
15.325 15.330 15.080 15.135 0
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.27 14.84 14.97
Volatility: 17 17 18
Volume: 0 0 0
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 1.1% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 18 periods.