Silver 1 OZ 999 NY (XAG=X) looks as if the uptrend is trying to continue
Silver markets gapped higher to kick off the trading session on Thursday, and then continue to go much higher without much of a pullback. This shows a shock to the market, and we have sliced through the 50 day EMA. At this point, the $18.00 level looks to be very resistive, and an area that will attract a lot of attention. Nonetheless, this is a market that looks as if it is trying to save itself, and I think it’s only a matter of time before the market goes looking towards the $19.00 level above where the previous uptrend line that has caused resistance recently could be tested again. Furthermore, the candlestick during the trading session on Thursday looks rather healthy, so it should have a bit of follow-through. We have formed a perfect “rebar reversal” based upon the Tuesday, Wednesday, and Thursday sessions. With that, it looks like the overall uptrend will continue to go higher.
The 200 day EMA underneath is sitting just below the $17.00 level, which in my estimation is the absolute “floor” in the market right now. I do think that we continue to go higher, but you will probably be better served to look at shorter-term charts for small pullbacks that then offer buying opportunities from a bounce or a stabilizing of a short-term pullback.
I have no interest in shorting silver, at least not until we break down below the 200 day EMA which is almost $1.00 below. If we did break down below there, then it’s very likely that the silver market will go looking towards the $16.00 level, but that would be a major turnaround in the attitude of markets, so obviously it would have to come due to some type of headline shock or news.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 18.40.
The projected lower bound is: 17.26.
The projected closing price is: 17.83.
A white body occurred (because prices closed higher 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.
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 23.3613. This is not an overbought or oversold reading. The last signal was a buy 11 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 51.07. 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 16 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 -39. This is not a topping or bottoming area. The last signal was a buy 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 sell 13 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.275 at 17.815. Volume was 8,900% above average (trending) and Bollinger Bands were 33% narrower than normal.
Open High Low Close Volume___
17.539 18.032 17.520 17.815 37,214
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.84 17.47 16.69
Volatility: 28 21 24
Volume: 3,721 744 186
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 6.7% above its 200-period moving average and is in an downward 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 bearish on XAG= and have had this outlook for the last 1 periods.