Silver 1 OZ 999 NY (XAG=X) price’s next breakout could happen
Although unable to hold a 3% rally late last week, the silver price is still in good shape and investors just have to be patient, according to one market analyst.
David Smith, senior analyst at the Morgan Report, said that although silver fell sharply from its highs Friday, the price is still holding support at $18 an ounce.
“It’s very common for attempts to push up through to resistance to fail the first time,” he said. “The silver price still managed to close above $18, which is a breakout on the descending triangle chart.”
Looking at the silver miners, Smith said that prices still need to push higher for producers to see the same effects of gold companies. With third-quarter earnings starting to trickle out of the mining sector, gold producers are seeing healthy margins and increased cash flows with gold prices up about 16% so far this year. To see the same conditions for silver producers, Smith said that prices need to trade close to $20 an ounce.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 18.83.
The projected lower bound is: 16.92.
The projected closing price is: 17.87.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 63.0270. This is not an overbought or oversold reading. The last signal was a buy 18 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 54.60. 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 37 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 147.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 18 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 5 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.165 at 17.855. Volume was -0% below average (neutral) and Bollinger Bands were 60% narrower than normal.
Open High Low Close Volume___
18.044 18.133 17.760 17.855 0
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.61 17.83 16.01
Volatility: 16 33 23
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 11.5% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 0 periods.