Silver 1 OZ 999 NY (XAG=X) solid support at $17.44
Gold and silver prices are lower and hitting new daily lows in early U.S. trading Tuesday, as rallying world stock markets that saw the U.S. indexes score more record highs overnight are keeping demand for the safe-haven metals squelched. December gold futures were last down $14.20 an ounce at 1,497.00. December Comex silver prices were last down $0.201 at $17.87 an ounce.
Asian and European stock indexes were mostly up in trading overnight. U.S. stock indexes are pointed toward modest gains and new all-time highs when the New York day session begins.
Risk sentiment worldwide remains upbeat amid ideas the U.S. and China are very close to a partial trade deal, called “Phase 1.” There are reports China is now pushing the U.S. to roll back some more tariffs on Chinese imports, with the U.S. possibly agreeing to such to get the deal sealed.
December silver futures bulls have the overall near-term technical advantage. Prices have been trending higher for five weeks. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $18.35 an ounce.
The next downside price breakout objective for the bears is closing prices below solid support at $17.44. First resistance is seen at this week’s high of $18.23 and then at $18.35. Next support is seen at $17.795 and then at last week’s low of $17.59.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 17.42.
The projected upper bound is: 18.52.
The projected lower bound is: 16.66.
The projected closing price is: 17.59.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 55.4950. This is not an overbought or oversold reading. The last signal was a buy 24 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 46.49. 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 43 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 -11. 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 11 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.445 at 17.600. Volume was 8,900% above average (trending) and Bollinger Bands were 46% narrower than normal.
Open High Low Close Volume___
18.050 18.099 17.510 17.600 36,949
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.87 17.89 16.08
Volatility: 22 32 23
Volume: 3,695 739 185
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 9.4% 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 6 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.