Silver 1 OZ 999 NY (XAG=X) may continue to get a bit of a boost
Silver markets have gone back and forth during the trading session on Monday as traders came back from the weekend. This is a sign that the market is trying to figure out where to go next, but clearly we have broken out to the upside. With the Federal Reserve entering a loose monetary policy, it makes sense that precious metals will continue to get a bit of a boost. That being said, we are also above the 200 day EMA, which is also a bullish sign. That doesn’t mean that we are going straight up in the air, but it does suggest that we are going higher.
At this point, the 200 day EMA is at the $15.14 level, and that offer a bit of support not only because of that moving average, but also because of the gap that formed at that area. The absolute “floor” of the market at this point is probably the $15.00 level. I recognize that the $15.50 level above is resistance, but I also think that it could very easily give way now. For short-term traders this will be a target, so you could see a little bit of profit taking as we have pulled back from there.
Gold has also broken out, which is another reason to think that perhaps silver will go higher, as the two over time do tend to move in the same direction. Quite frankly, I don’t have any interest in shorting this market until we get well below the $15.00 level. Ultimately, I think we are probably going to go looking towards the $16.00 level.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 15.00.
The projected upper bound is: 15.86.
The projected lower bound is: 15.11.
The projected closing price is: 15.48.
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 30 white candles and 18 black candles for a net of 12 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 82.3744. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 8 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 69.62. 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 2 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 131.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 11 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 18 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.044 at 15.474. Volume was 8,900% above average (trending) and Bollinger Bands were 63% wider than normal.
Open High Low Close Volume___
15.410 15.510 15.320 15.474 7,849
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.12 14.82 14.95
Volatility: 13 16 18
Volume: 785 157 39
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 3.5% above its 200-period moving average and is in an upward trend. Volatility is low 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 bullish on XAG= and have had this outlook for the last 14 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.