Silver 1 OZ 999 NY (XAG=X) under pressure
As expected, gold and silver are under pressure once again. We have been writing for weeks that the metals appear to be headed lower. The trends in both gold and silver are lower, which brings lower levels into play.
The next targets for the metals are $1460 gold and $17.00 silver. Our expectations are not for an immediate crash to those levels, before we can see any chance for a reversal. We also have lower targets in mind, but watch the charts one level at a time.
We are looking for continued action that we have seen over the last six weeks, which consists of lower highs and lower lows. The resistance levels are solid at $1,500 gold and $17.70 silver. As the markets continue lower the resistance levels will continue to fall. We are short and bearish gold and silver.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 18.35.
The projected lower bound is: 16.43.
The projected closing price is: 17.39.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 25 black 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 35.1038. This is not an overbought or oversold reading. The last signal was a buy 10 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 45.38. 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 29 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 -84. This is not a topping or bottoming area. The last signal was a buy 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 sell 1 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.017 at 17.388. Volume was 8,900% above average (trending) and Bollinger Bands were 9% narrower than normal.
Open High Low Close Volume___
17.409 17.467 17.120 17.388 31,067
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.54 17.72 15.93
Volatility: 16 34 23
Volume: 3,107 621 155
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 9.2% above its 200-period moving average and is in an downward trend. Volatility is high 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 bearish on XAG= and have had this outlook for the last 14 periods.