Gold and silver futures prices lower in midday U.S. trading Tuesday, pressured by profit taking from recent gains by the shorter-term futures traders. Also, the key outside markets are bearish for the metals on this day—higher U.S. dollar index and lower crude oil prices. Also, global stock markets have somewhat stabilized Tuesday after hitting some fresh Covid turbulence on Monday—somewhat reducing risk aversion. February gold futures were last down $12.50 at $1,870.50 and March Comex silver was last down $0.919 at $25.455 an ounce.
March silver futures bulls have the overall near-term technical advantage amid a price uptrend still in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $28.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at $26.00 and then at today’s high of $26.815. Next support is seen at this week’s low of $25.12 and then at $25.00.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 24.06.
The projected upper bound is: 26.86.
The projected lower bound is: 23.73.
The projected closing price is: 25.30.
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 28 white candles and 22 black candles for a net of 6 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 38.0111. This is not an overbought or oversold reading. The last signal was a sell 1 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 56.40. 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 64 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 45. This is not a topping or bottoming area. The last signal was a sell 1 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 buy 14 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.153 at 25.275. Volume was 8,900% above average (trending) and Bollinger Bands were 10% wider than normal.
Open High Low Close Volume 25.140 25.451 25.040 25.275 5,920
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 24.99 24.31 21.28 Volatility: 40 41 53 Volume: 592 118 30
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 18.8% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term.
Our volume indicators reflect very strong flows of volume out of XAG= (bearish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 11 periods.