Silver futures prices are weaker in early U.S. trading Thursday. The precious metals have been hit by a stronger U.S. dollar index this week. The precious metals have not seen much safe-haven demand amid a U.S. stock market that has become wobbly this week. December gold futures were last down $4.50 at $1,874.40 and December Comex silver was last down $0.194 at $23.16 an ounce.
December silver futures bulls have the overall near-term technical advantage but a price uptrend on the daily bar chart has been negated and bulls need to show fresh power soon. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the October high of $25.71 an ounce.
The next downside price objective for the bears is closing prices below solid support at the September low of $21.81. First resistance is seen at the overnight high of $24.58 and then at this week’s high of $24.765. Next support is seen at the October low of $22.965 and then at $22.50.
Overall, the bias in prices is: Sideways.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 23.66.
The projected upper bound is: 25.31.
The projected lower bound is: 21.51.
The projected closing price is: 23.41.
A white body occurred (because prices closed higher 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 24 white candles and 26 black candles for a net of 2 black candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend (which appears to be the case with PREC.M.XAG=). It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend, it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
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 31.7310. This is not an overbought or oversold reading. The last signal was a sell 13 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 41.82. 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 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 -144.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 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 0.200 at 23.475. Volume was 8,900% above average (trending) and Bollinger Bands were 53% narrower than normal.
Open High Low Close Volume 23.220 23.560 23.180 23.475 8,541
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 24.26 25.28 19.91 Volatility: 34 49 57 Volume: 854 171 43
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 17.9% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods.
Our volume indicators reflect very strong flows of volume into XAG= (bullish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 5 periods.