Silver 1 OZ 999 NY (XAG=X) should continue to be in demand
Silver markets went back and forth during the trading session after gapping higher on Wednesday, showing a clear range as to where the market wants to deal with. The $15.25 level underneath should be support, while the $15.50 level above should be resistance. That being the case, it makes a lot of sense that you should look towards extremist to play off of. Overall though, we are above the 200 day EMA so Silver should be somewhat bullish. Pay attention to the US dollar, because as it falls in strength it makes precious metals look much better.
Looking at the economic situation, we do see a lot of central banks out there looking to ease monetary policy, so quite frankly it makes sense that precious metals should continue to be in demand. Underneath, we have the 200 day EMA at the $15.16 level, and then of course the $15.00 level underneath which is the scene of a gap both offering support.
If we can break above the $15.50 level, then the market should go looking towards the $16.00 level which has been my longer-term target. That being said, if we were to break down below the $15.00 level, then the market could very well go down to the $14.75 level, possibly the $14.50 level after that. Ultimately, this is a market that has quite a bit of strength underneath it, so I believe it’s only a matter time before the buyers come back in to pick up value.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 15.02.
The projected upper bound is: 15.69.
The projected lower bound is: 14.92.
The projected closing price is: 15.30.
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 30 white candles and 19 black candles for a net of 11 white candles.
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 53.3176. This is not an overbought or oversold reading. The last signal was a sell 6 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 59.12. 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 8 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 5 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 1 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.012 at 15.293. Volume was 8,900% above average (trending) and Bollinger Bands were 29% wider than normal.
Open High Low Close Volume___
15.280 15.440 15.160 15.293 15,347
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.31 14.85 14.98
Volatility: 16 16 18
Volume: 1,535 307 77
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 2.1% above its 200-period moving average and is in an upward trend. Volatility is high 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 bullish on XAG= and have had this outlook for the last 20 periods.