Silver 1 OZ 999 NY (XAG=X) sees profit taking from the shorter-term futures traders and on downside corrections
Gold and silver prices are lower in midday U.S. trading Thursday, on some normal profit taking from the shorter-term futures traders and on downside corrections after prices hit a six-year high in gold and a 13-month high in silver Wednesday.
The global marketplace was calmer Thursday, following the keener anxiety seen among traders and investors on Wednesday. That allowed the world stock markets to rebound and bond yields to recover, pressure the safe-haven metals. December gold futureswere last down $12.20 an ounce at 1,507.40. September Comex silver prices were last down $0.261 at $16.935 an ounce.
September silver prices closed nearer the session low. The silver bulls still have the solid overall near-term technical advantage. A 10-week-old uptrend is in place on the daily bar chart.
Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at this week’s high of $17.145 and then at $17.25. Next support is seen at today’s low of $16.81 and then at $16.685.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 15.69.
The projected upper bound is: 17.51.
The projected lower bound is: 16.45.
The projected closing price is: 16.98.
A black body occurred (because prices closed lower 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 33 white candles and 17 black candles for a net of 16 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 82.8037. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 9 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 68.27. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 217.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 10 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 0 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.170 at 16.930. Volume was 8,900% above average (trending) and Bollinger Bands were 92% wider than normal.
Open High Low Close Volume___
17.060 17.203 16.780 16.930 17,385
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 16.51 15.54 15.18
Volatility: 28 21 19
Volume: 1,739 348 87
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 high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 46 periods.