Silver 1 OZ 999 NY (XAG=X) posting solid gains
Gold prices are near steady in early U.S. trading Monday, on a normal pause and some corrective consolidation after prices last Friday scored a six-year high. Silver prices are posting solid gains today, after that metal hit a 13-month peak on Friday. August gold futures were last down $0.40 an ounce at 1,426.30. September Comex silver prices were last up $0.205 at $16.40 an ounce.
Gold and silver bulls are in the driver’s seat at mid-summer, and a pause in near-term price uptrends would not be surprising this week.
September silver futures bulls have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce.
The next downside price breakout objective for the bears is closing prices below solid support at $15.625. First resistance is seen at today’s high of $16.455 and then at $16.50. Next support is seen at the overnight low of $16.195 and then at $16.00.
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 15.27.
The projected upper bound is: 16.82.
The projected lower bound is: 15.92.
The projected closing price is: 16.37.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 34 white candles and 16 black candles for a net of 18 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 84.7209. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 19 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 73.61. 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 21 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 142.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 8 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 0.135 at 16.340. Volume was -0% below average (neutral) and Bollinger Bands were 125% wider than normal.
Open High Low Close Volume___
16.220 16.427 16.140 16.340 0
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.64 15.03 15.05
Volatility: 20 19 18
Volume: 0 0 0
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 8.6% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 33 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.