Silver 1 OZ 999 NY (XAG=X) Leading the Way Lower

Silver 1 OZ 999 NY (XAG=X) Leading the Way Lower

The other day silver once again validated the trend-line running down off the February high with another solid drop following a retest. Stay below the trend-line and the outlook will remain neutral at best in the near-term, but broadly bearish.

It’s the clear leader on the downside here and there isn’t much in the way of support to prevent silver from soon trading to 14. Down there we might see a lift as long-term support arrives by way of last year’s lows and a trend-line from 2015, but until then sellers should remain firmly in charge.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 14.93.

The projected upper bound is: 14.84.

The projected lower bound is: 14.15.

The projected closing price is: 14.50.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 22 black candles for a net of 4 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 45.2737. This is not an overbought or oversold reading. The last signal was a buy 6 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 42.89. 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 buy 8 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 -40. This is not a topping or bottoming area. The last signal was a buy 5 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 0 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.100 at 14.515. Volume was 8,900% above average (trending) and Bollinger Bands were 3% narrower than normal.

Open High Low Close Volume___
14.400 14.569 14.320 14.515 14,964

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 14.48 14.89 14.90
Volatility: 15 15 18
Volume: 1,496 299 75

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 2.6% below its 200-period moving average and is in an downward 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 bearish on XAG= and have had this outlook for the last 64 periods.

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