Silver markets have gone back and forth during the course of the week, dancing around the $27 level. The $26 level underneath is significant support, just as the $28 level above is significant resistance. With that being the case, we are essentially at “fair value” for shorter-term traders, and we may be simply going sideways to digest the massive gains that we had seen getting to this level. After all, it was not that long ago that the market was down near the $20 handle.
With that being said, it is not a question that of whether or not we are going to see silver continue to find buyers, just that whether or not we need to see lower prices to attract enough buyers to push higher again. That may very well be the case, so I look at pullbacks and breakdowns at this point as an opportunity, and I will be looking for stabilization after we break down. However, we may not have the ability to take advantage of that, because we may just shoot through the $28 level. A daily close above that level is a very strong sign, and then most certainly a weekly candlestick would of course be even more bullish.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 29.92.
The projected lower bound is: 23.94.
The projected closing price is: 26.93.
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 29 white candles and 21 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 53.1276. This is not an overbought or oversold reading. The last signal was a buy 8 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 51.43. 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 28 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 -40. This is not a topping or bottoming area. The last signal was a sell 12 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 27 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.335 at 26.765. Volume was -0% below average (neutral) and Bollinger Bands were 56% narrower than normal.
Open High Low Close Volume 27.010 27.200 26.685 26.765 0
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 26.99 25.47 18.96 Volatility: 17 74 52 Volume: 0 0 0
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 41.2% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
Our volume indicators reflect very strong flows of volume into XAG= (bullish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 10 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.