Silver 1 OZ 999 NY (XAG=X) prices supported by slumping greenback
Gold and silver prices are modestly up in early U.S. trading Monday, while silver prices are solidly higher. An eroding U.S. dollar index that fell to a nine-week low overnight is helping to lift precious metals prices. However, gains in the safe-haven metals are being limited by higher global equity markets to start the trading week. The U.S. stock indexes are trading very close to their yearly and all-time highs. December gold futures were last up $1.70 an ounce at 1,495.80. December Comex silver prices were last up $0.247 at $17.825 an ounce.
Trader and investor attitudes worldwide remain generally upbeat to start the trading week. The U.S.-China trade negotiations appear to be going well, including implementing the “Phase 1” agreement reached between the world’s two largest economies recently.
The Brexit situation continues to languish after a hoped-for weekend deal between the U.K. and the European Union fell through. The British Parliament moved to again delay by three months a vote to seal the Brexit deal. U.K. Prime Minister Boris Johnson is not happy about the situation.
December silver futures bulls have the overall near-term technical advantage and are working on negating a six-week-old downtrend line in place 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 the October low of $16.94. First resistance is seen at $18.00 and then at $18.25. Next support is seen at the overnight low of $17.53 and then at $17.33.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 18.51.
The projected lower bound is: 16.60.
The projected closing price is: 17.55.
A white body occurred (because prices closed higher 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 25 white candles and 25 black candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend (which appears to be the case with PREC.M.XAG=). It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend, it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
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).
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 62.5421. This is not an overbought or oversold reading. The last signal was a buy 13 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 48.48. 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 32 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 86. This is not a topping or bottoming area. The last signal was a buy 13 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 4 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.002 at 17.543. Volume was 8,900% above average (trending) and Bollinger Bands were 30% narrower than normal.
Open High Low Close Volume___
17.540 17.870 17.480 17.543 29,143
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.54 17.76 15.95
Volatility: 17 34 23
Volume: 2,914 583 146
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 10.0% above its 200-period moving average and is in an downward 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 bearish on XAG= and have had this outlook for the last 17 periods.