Silver futures prices are solidly higher in early U.S. trading Wednesday, as bullish traders stepped in to buy Tuesday’s sharp dip in prices. A lower U.S. dollar index at mid-week is also aiding the precious metals market bulls. December gold futures were last up $18.00 at $1,913.00 and December Comex silver was last up $0.446 at $24.58 an ounce.
Global stock markets were mixed overnight. U.S. stock indexes are set to open the New York day session near steady levels. Featured in the stock markets this week is third-quarter earnings reports from major companies. The worrisome spreading of the Covid-19 virus in major industrialized countries and elsewhere has traders and investors tentative at mid-week. Microsoft founder Bill Gates, who has been studying pandemics for many years, said in a CNBC interview today that the U.S. should expect a “rough” next several months regarding the Covid-19 virus.
December silver futures bulls have the overall near-term technical advantage and are still working on a price uptrend on the daily chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at $25.00 and then at Tuesday’s high of $25.31. Next support is seen at the overnight low of $23.93 and then at $23.50.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 23.54.
The projected upper bound is: 26.91.
The projected lower bound is: 21.13.
The projected closing price is: 24.02.
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 24 white candles and 26 black candles for a net of 2 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 34.4607. This is not an overbought or oversold reading. The last signal was a sell 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 46.24. 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 15 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 21. This is not a topping or bottoming area. The last signal was a sell 2 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 6 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.163 at 24.117. Volume was 8,900% above average (trending) and Bollinger Bands were 25% narrower than normal.
Open High Low Close Volume 24.263 24.288 23.990 24.117 4,178
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 24.16 25.89 19.56 Volatility: 57 71 56 Volume: 418 84 21
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 23.3% above its 200-period moving average and is in an downward trend. Volatility is high 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 29 periods.