Silver 1 OZ 999 NY (XAG=X) Markets Pressing Major Resistance
Silver markets have rallied a bit during the trading session on Monday, reaching towards the $15 level. Keep in mind that silver is not only a precious metal, but it is also an industrial one.
That being the case, it makes sense that as the silver markets rally a bit due to the fact that the idea of growth coming back of course will drive up the demand for this metal.
The slowing down of some of the coronavirus deaths has people looking forward, but at this point it’s probably a bit premature to expect that everything is going to turn around. Nonetheless, this is a sign that the market is trying to rally in a risk on sentiment as soon as we can get signs of strength.
That being said, daily close above the $15.20 level opens up the possibility of a move towards the $16.00 level, and then possibly the $16.50 level. On the other hand, if we turned back around and break down from here it’s likely that the market probably goes looking towards the $14.00 level, an area that has offered significant support as recently as Friday.
Ultimately, this is a market that sees a lot of noise in this area so I suspect that this market could go back and forth. With that in mind, be cautious but paying attention to the $15.00 level is probably the key to the entirety of the next move. If we were to break down below the $14 level it opens up the door down to $13 which was sent resistance and now should be support.
Overall, the bias in prices is: Sideways.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 16.55.
The projected lower bound is: 13.75.
The projected closing price is: 15.15.
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 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 86.3675. 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 52.79. 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 10 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 132.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 12 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 8 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.212 at 15.197. Volume was 8,900% above average (trending) and Bollinger Bands were 103% wider than normal.
Open High Low Close Volume___
15.000 15.485 14.912 15.197 26,977
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 14.44 16.22 17.01
Volatility: 37 61 38
Volume: 2,698 540 135
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 10.6% below its 200-period moving average and is in an downward trend. Volatility is high 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 27 periods.