Gold and silver futures prices are trading near steady levels at midday Monday, recovering solid early losses that saw gold hit a 5.5-month low and silver notch a nine-week low.
Traders and investors are exhibiting little risk aversion at present as seen by recent rallies in global stock markets. However, both metals did regain a bit of ground as the U.S. stock market at midday has lost its early gains and is trading lower.
Still, amid no geopolitical hotspots at present, Covid-19 vaccine hopes and an apparent smoother transition of U.S. presidential duties seen, that’s all bearish for the safe-haven metals. February gold futures were last down $1.00 at $1,787.20 and March Comex silver was last up $0.046 at $22.69 an ounce.
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 23.60.
The projected upper bound is: 24.64.
The projected lower bound is: 21.02.
The projected closing price is: 22.83.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 38.3641. This is not an overbought or oversold reading. The last signal was a buy 3 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 38.52. 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 48 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 -99. This is not a topping or bottoming area. The last signal was a buy 0 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 8 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.253 at 22.858. Volume was 8,900% above average (trending) and Bollinger Bands were 35% narrower than normal.
Open High Low Close Volume 22.610 22.890 22.561 22.858 5,553
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 23.43 24.01 20.58 Volatility: 25 48 58 Volume: 555 111 28
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 11.1% 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 into XAG= (bullish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 6 periods.