Silver 1 OZ 999 NY (XAG=X) moderately higher amid heightened concerns about slowing world economic growth
Gold and silver prices are moderately higher in early U.S. trading Wednesday. Safe-haven demand continues to be featured for the two precious metals at mid-week, amid heightened concerns about slowing world economic growth. Geopolitics also remains close to the front burner of the marketplace, which is also supporting gold and silver. December gold futures were last up $8.20 an ounce at 1,522.80. September Comex silver prices were last up $0.155 at $17.14 an ounce.
September silver futures bulls have the solid overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce.
The next downside price breakout objective for the bears is closing prices below solid support at $16.685. First resistance is seen at $17.26 and then at this week’s high of $17.49. Next support is seen at $17.00 and then at the overnight low of $16.855.
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 15.84.
The projected upper bound is: 17.79.
The projected lower bound is: 16.71.
The projected closing price is: 17.25.
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 33 white candles and 17 black candles for a net of 16 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 65.4941. This is not an overbought or oversold reading. The last signal was a sell 3 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 70.21. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 4 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 105.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 14 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 4 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.235 at 17.200. Volume was 8,900% above average (trending) and Bollinger Bands were 31% wider than normal.
Open High Low Close Volume___
16.969 17.316 16.850 17.200 16,558
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 16.75 15.72 15.23
Volatility: 26 21 18
Volume: 1,656 331 83
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 13.0% above its 200-period moving average and is in an upward 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 bullish on XAG= and have had this outlook for the last 50 periods. Our momentum oscillator is currently indicating that XAG= is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.