Silver 1 OZ 999 NY (XAG=X) showing signs of confusion
Silver markets went back and forth during trading on Tuesday, showing signs of confusion and exhaustion. This is a market that has been bullish, although not nearly as bullish as the Gold markets have been. But that in mind, it makes sense that we continue to see a lot of choppiness and sideways action as the markets have no idea what they want to do. Machines have taken over and quite frankly we have almost all correlations breaking down at the same time. We are now in the world that has bonds, stocks, and precious metals all going up at the same time.
Because of this, you simply must ignore other markets and focus on the one your trading. Silver is going higher overall, so it makes sense to buy dips going forward. With all that, it’s very likely that this market continues to see buyers on dips, as the 200 day EMA is sitting underneath and providing support. Below there, we have the $15 level so the gap from a couple of days ago should hold as well. The $15.50 level will be resistance as per usual, but if we can break above there it’s likely that we go to the $15.75 level, perhaps followed by the $16.00 level over the longer-term. Look at pullbacks as value unless we break down below the $15.00 level on a daily close. That’s really all you can do in a market that shows no correlations to anything else at this point.
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: 14.87.
The projected closing price is: 15.26.
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 28 white candles and 20 black candles for a net of 8 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 67.7326. This is not an overbought or oversold reading. The last signal was a sell 1 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 60.38. 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 3 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 64. This is not a topping or bottoming area. The last signal was a sell 0 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 19 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.115 at 15.250. Volume was 8,900% above average (trending) and Bollinger Bands were 49% wider than normal.
Open High Low Close Volume___
15.351 15.356 15.140 15.250 11,517
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.16 14.82 14.96
Volatility: 16 16 18
Volume: 1,152 230 58
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 1.9% 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 15 periods.