Silver 1 OZ 999 NY (XAG=X) Prices Attempt to Rally
Silver prices attempted to push higher, but prices were rejected at higher levels. While the coronavirus has added volatility and uncertainty as it pertains to growth, the safe haven natural of silver demand helped buoy prices.
Gold continued to rally, breaking out of a cup and handle pattern, but this was not strong enough to pull silver higher. The US dollar moved higher against most major currencies, which also generates a headwind for silver prices. This is because silver is priced in dollars, and a stronger dollar makes silver more expensive in other currencies. Hedge fund trader reduced both long and short positions in futures and options according to the latest Commitment of Trader’s report.
Silver prices intra-day were rejected multiple times at $18.34, and closed near the open, which is a sign of uncertainty. Trend line resistance on silver prices is seen near a downward sloping trend line that comes in near $18.70. Silver will need to close through this level to confirm a breakout.
Short-term support is seen near the 10-day moving average at $17.94. Short term momentum on silver prices is positive as the fast stochastic generated a crossover buy signal in oversold territory. The fast stochastic has moved out of oversold territory and is currently printing a reading of 32, above the oversold trigger level of 20.
Medium-term momentum is neutral. The RSI (relative strength index) is moving sideways to slightly higher but the rangebound nature of the RSI movement reflects consolidation. This is the same for the MACD (moving average convergence divergence) histogram which is printing in the red with a flat trajectory that points to consolidation.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 18.60.
The projected lower bound is: 17.63.
The projected closing price is: 18.11.
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 30 white candles and 19 black candles for a net of 11 white candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 64.2760. This is not an overbought or oversold reading. 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 58.18. 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 13 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 112.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 1 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 sell 10 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.010 at 18.092. Volume was 8,900% above average (trending) and Bollinger Bands were 54% narrower than normal.
Open High Low Close Volume___
18.085 18.329 18.010 18.092 39,093
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.93 17.44 16.65
Volatility: 17 18 24
Volume: 3,909 782 195
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 8.7% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 26 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.