Silver suffered its worst weekly decline in nine years last week, as traders sold the popular metal and moved back into the US dollar.
Silver price technical analysis shows that a recovery back towards $26 remains possible while bulls maintain the price above the metal’s 100-day moving average.
Silver declined by more than $5 last week, as the metal broke under a large triangle pattern and subsequently fell to its weakest trading level since July this year.
Silver technical analysis over the medium term shows that a key rising trendline has been broken, placing the emphasis on further downside.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 27.16.
The projected lower bound is: 20.97.
The projected closing price is: 24.07.
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 25 white candles and 25 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 76.6672. This is not an overbought or oversold reading. 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 41.00. 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 4 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 -43. This is not a topping or bottoming area. The last signal was a buy 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 sell 35 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.128 at 24.047. Volume was 8,900% above average (trending) and Bollinger Bands were 46% wider than normal.
Open High Low Close Volume 24.149 24.300 23.980 24.047 9,496
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 24.39 26.06 19.22 Volatility: 65 75 55 Volume: 950 190 47
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 25.1% above its 200-period moving average and is in an downward 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 into XAG= (bullish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 18 periods.