Silver 1 OZ 999 NY (XAG=X) Jump After ETF Investment Surge

Silver 1 OZ 999 NY (XAG=X) Jump After ETF Investment Surge

GOLD and SILVER PRICES spiked overnight in Asia trade on Friday as US President Trump claimed that a US Navy assault ship had shot down an Iranian drone threatening to attack it. Gold then eased back $15 in London business, retreating from its new 6-year Dollar high of $1452 to show a 1.6% gain for the week. Silver in contrast held onto its overnight jump, extending its gains for the week to 7.1% at $16.30 – near its highest in 13 months. 

That held the Gold/Silver Ratio of the 2 precious metals’ relative pricingat yesterday’s drop to 88, the lowest since last August and sharply down from this spring’s 26-year record highs for gold’s value relative to the cheaper gray metal. 

Asian stock markets rallied to close the week unchanged but European equities struggled – and Euro government bond yields fell – after new inflation data from Germany said factory prices fell sharply last month from May. Japan’s inflation figures also missed analyst forecasts, slowing to 0.5% annual growth in consumer prices – the weakest in almost 2 years when fuel and food costs are excluded. 

Both Japanese and German bond yields fell on Friday’s news, nearing their recent 3-year and new all-time negative lows respectively at -0.15% and -0.35% per annum, effectively costing investors to lend to Tokyo or Berlin.

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 15.21.

The projected upper bound is: 16.68.

The projected lower bound is: 15.79.

The projected closing price is: 16.23.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 33 white candles and 17 black candles for a net of 16 white candles.

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 89.3379. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 18 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 71.80. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 20 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 185.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 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 buy 3 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.130 at 16.205. Volume was -0% below average (neutral) and Bollinger Bands were 96% wider than normal.

Open High Low Close Volume___
16.300 16.580 16.030 16.205 0

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 15.51 15.00 15.04
Volatility: 20 19 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.

Summary

PREC.M.XAG= is currently 7.7% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 32 periods. Our momentum oscillator is currently indicating that XAG= is currently in an overbought condition.

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