Silver 1 OZ 999 NY (XAG=X) market is probably going to continue to see buyers on these dips

Silver 1 OZ 999 NY (XAG=X) market is probably going to continue to see buyers on these dips

Silver markets have fallen during the trading session on Tuesday, reaching down towards the 50 day EMA before turning around and bouncing enough to cause a bit of a hammer by midday. This shows that the market is of course going to be very resilient, and it looks likely that the market is probably going to continue to see buyers on these dips. These dips of course represent value for those who look at silver as a good hedge against the quantitative easing and interest-rate cuts of central banks.

Looking at this chart, the market is very likely to continue granting higher, perhaps reaching towards the $18.00 level. This is an interesting set up though, because the FOMC Interest-rate Statement comes out on Wednesday. At this point, traders will continue to focus on the idea of whether or not the Federal Reserve is going to be dovish or perhaps even overly dovish.

The more dovish they are, the more likely the silver market is to rally from here and continue to go higher. Because of this, it’s very likely that the market will continue to go back and forth between now and then, but eventually we would see some type of resolution to the situation, and an impulsive candle should suddenly send this market in its longer-term direction. The market breaking out to the upside opens up the door to the highs again, while a breakdown below the uptrend line underneath opens the door to the $17.00 level, and then possibly than the 200 day EMA.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 18.77.

The projected lower bound is: 16.87.

The projected closing price is: 17.82.


A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 black 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 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 43.9562. This is not an overbought or oversold reading. The last signal was a buy 20 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 53.33. 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 39 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 74. This is not a topping or bottoming area. The last signal was a sell 1 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 7 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.007 at 17.804. Volume was 8,900% above average (trending) and Bollinger Bands were 61% narrower than normal.

Open     High      Low     Close     Volume___
17.805 17.864 17.710 17.804 20,159
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 17.69 17.85 16.04
Volatility: 13 33 23
Volume: 2,016 403 101

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 11.0% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 2 periods.

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