Silver markets rallied a bit during the trading session on Monday as we continue to see a flush into precious metals overall. Ultimately, I think that the market is likely to see a lot of volatility, but at this point the question then is whether or not we see some type of follow-through or if we simply continue to chop back and forth.
Because of this, it is likely that we will have a lot of back and forth trading more than anything else but could see a sudden moves. After all, silver is extraordinarily explosive, and with the massive amount of concerns out there, it would make quite a bit of sense that the volatility picks up.
Having said that, pay attention to the US dollar because that could have an influence on where we go as the two markets are relatively negatively correlated. Underneath, I believe that the $26 level is rather supportive, just as the $25 level is, especially as the 50 day EMA is sitting right there.
Ultimately, I believe that it will be difficult to break down below there. To the upside, the $29 level above will be resistance, extending to the $30 level. If we can break above the $30 level, then it is likely that we go much higher.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 30.38.
The projected lower bound is: 24.41.
The projected closing price is: 27.39.
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 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).
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 72.7357. This is not an overbought or oversold reading. The last signal was a buy 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 55.58. 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 26 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 0. This is not a topping or bottoming area. The last signal was a sell 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 25 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.010 at 27.225. Volume was 8,900% above average (trending) and Bollinger Bands were 56% narrower than normal.
Open High Low Close Volume 27.210 27.300 27.000 27.225 10,038
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 26.95 25.14 18.86 Volatility: 25 74 52 Volume: 1,004 201 50
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 44.4% 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 8 periods.