Silver 1 OZ 999 NY (XAG=X) Prices Hover at $17.00 as Drifting Continues
Silver is flat in Tuesday trade. In the European session, the metal is trading at $17.09, up $0.04 or 0.28% on the day. On the fundamentals front, the U.S. releases Building Permits, which is expected to remain steady at 1.39 million.
Ahead – FOMC Minutes
It’s a light economic calendar this week, so investors will be focused on the Federal Reserve minutes. This report will provide details of the most recent meeting, which took place at the end of October. At the meeting, the Fed lowered the benchmark rate to 1.75%, the lowest the rate has been since May. This also marked a third straight rate cut, but at the same time, the move was considered hawkish, as policymakers sent a signal that they were taking a pause from trimming rates. The Fed said that the economy was “in a good place”, but also stated that “uncertainties about the outlook remain”. The minutes are sure to provide insights into the Fed’s take on the economic picture, and traders should treat the minutes as a market-mover. Meanwhile, Fed Chair Jerome Powell met with President Trump on Monday. Trump has criticized the Fed, saying that rates remain too high. For his part, Powell reiterated that he would continue to be guided by the twin goals of stable inflation and maximum employment.
Silver Technical Analysis
Silver has been range-bound for over a week, as the metal continues to stay close to the 17.00 level. We are certainly due for a breakout, but when? Traders should note that the 50-EMA and 200-EMA lines remain relevant. There is immediate resistance at 17.25. This is closely followed by the 50-EMA, which is currently at 17.44. Above, there is resistance at 17.75.
On the downside, the 200-EMA is just below silver, at 16.68. This line has held in support since November 8. Close by, there is support at 16.50. This is followed by support at the round number of 16.00
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 17.27.
The projected upper bound is: 17.87.
The projected lower bound is: 16.33.
The projected closing price is: 17.10.
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 24 white candles and 26 black candles for a net of 2 black 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 79.1354. This is not an overbought or oversold reading. The last signal was a buy 4 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 43.62. 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 53 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 -31. This is not a topping or bottoming area. The last signal was a buy 4 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 9 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.095 at 17.116. Volume was 8,900% above average (trending) and Bollinger Bands were 8% wider than normal.
Open High Low Close Volume___
17.021 17.181 16.950 17.116 48,428
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.02 17.59 16.14
Volatility: 22 28 24
Volume: 4,843 969 242
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 6.0% above its 200-period moving average and is in an downward 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 bearish on XAG= and have had this outlook for the last 7 periods.