Silver markets have been rather choppy during the month of November, as we are trying to find stabilization. However, when you work it from a higher timeframe, you can see clearly that the market has simply been digesting massive gains from the previous, massive move to the upside. After all, we rallied from the $18 level to the $30 level in just a few weeks. To think that we would go sideways for a while after that, as we grind lower in general, would not be a surprise.
It is worth noting that the $22.75 level continues to offer support as it has over the last couple of months and has been rather stringent. We are starting to price on the prospect of an economic rebound due to the coronavirus vaccine coming out. This could continue to help silver, which has an industrial usage, perhaps making it more attractive than gold as we continue to price on recovery. However, there are several bumps along the way that could present themselves when it comes to the “risk-on trade.”
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 23.61.
The projected upper bound is: 24.12.
The projected lower bound is: 20.49.
The projected closing price is: 22.30.
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 26 white candles and 24 black candles for a net of 2 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 19.4407. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 2 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 33.24. 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 buy 47 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 -158.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 15 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 7 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.345 at 22.350. Volume was 8,900% above average (trending) and Bollinger Bands were 37% narrower than normal.
Open High Low Close Volume 22.685 22.740 22.295 22.350 4,651
Technical Outlook Short Term: Oversold Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 23.56 24.04 20.55 Volatility: 22 48 58 Volume: 465 93 23
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 8.7% above its 200-period moving average and is in an downward 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 bearish on XAG= and have had this outlook for the last 5 periods.