Silver 1 OZ 999 NY (XAG=X) Markets Grinding Higher
Silver markets have rallied a bit during the trading session on Tuesday, reaching towards the $16.50 level. The 200 day EMA above is an area where I think you are going to see a certain amount of resistance, but all things being equal it’s likely that the market is going to continue to see that area caused a bit of resistance.
I think signs of exhaustion will probably end up being buying opportunities ultimately, but the $15.00 level underneath is an area that we need to pay quite a bit of attention to as it is a large, round, psychologically significant figure, and of course is the top of the bullish flag underneath. Even if that bullish flag gets fulfilled, with a target of $17.50, we probably need to come back in order to test for support underneath.
To the upside, if we break above the $17.00 level then we obviously go to the $17.50 level, and then eventually the $18 level after that. I think silver is going to be a bit of a mixed picture though, because we have a lot of concerns when it comes to industrial demand. Granted, there is a little bit of a precious metals aspect and safety trade to silver in response to the Federal Reserve, but at the end of the day it lacks gold because it also has the industrial component attached to it. With that in mind, while I am bullish and I do by pullbacks, I do so in smaller positions than I would with gold.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 17.02.
The projected lower bound is: 14.21.
The projected closing price is: 15.61.
A black body occurred (because prices closed lower 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 27 white candles and 23 black candles for a net of 4 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 89.7301. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 5 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 56.90. 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 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 107.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 18 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 14 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.160 at 15.650. Volume was 8,900% above average (trending) and Bollinger Bands were 48% wider than normal.
Open High Low Close Volume___
15.734 15.760 15.560 15.650 6,931
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 15.16 15.94 17.02
Volatility: 34 61 38
Volume: 693 139 35
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 8.0% below 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 3 periods.