Silver 1 OZ 999 NY (XAG=X) resistance near $15.60
Silver will likely find resistance near $15.60 and move slightly lower before another upside price leg takes place. Both gold and silver have begun incredible price rallies over the past 10+ days and we believe this is just the start of a much bigger price trend.
DAILY SILVER CHART ANALYSIS
The $15.60 to $15.75 resistance level can be seen on this chart by our RED highlighted price peaks. Additionally, the upper RESISTANCE ZONE between $16.15 and $16.78 is a big range that has historically been a key price channel.
My cycle and trend trading indicators are suggesting this move is far from over, yet we believe this move upward will happen in advancement legs and this first leg is nearing exhaustion. This is why we are issuing this warning to all investors right now. We believe a downward price rotation, a stalling price pattern, will set up where a technical trader will be able to acquire silver below $15.25 again very soon. The next leg higher may start fairly quickly as we don’t expect this rotation to extend out for many weeks.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 15.00.
The projected upper bound is: 15.64.
The projected lower bound is: 14.88.
The projected closing price is: 15.26.
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 28 white candles and 20 black candles for a net of 8 white candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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 48.8135. This is not an overbought or oversold reading. The last signal was a sell 2 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 60.49. 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 4 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 51. This is not a topping or bottoming area. The last signal was a sell 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 buy 20 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.018 at 15.258. Volume was 8,900% above average (trending) and Bollinger Bands were 42% wider than normal.
Open High Low Close Volume___
15.250 15.295 15.140 15.258 10,637
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.19 14.82 14.96
Volatility: 15 16 18
Volume: 1,064 213 53
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 2.0% 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 16 periods.