Silver prices are sharply lower and hit a seven-week low in morning dealings Wednesday. A surging U.S. dollar index that hit a seven-week high today is helping to pressure the precious metals markets. Just this week, silver prices have shed almost $4 an ounce. Silver prices this week have seen their near-term uptrend negated and prices are now in a six-week-old downtrend on the daily bar char.
The near-term technical posture for silver has deteriorated rapidly, and some longer-term chart damage has also occurred as prices this week produced a bearish downside gap. There is not much chart support that shows up for silver until prices reach major psychological support at $20.00. Still, silver bulls can argue a price uptrend is still in place on the weekly chart—but the bulls need to stop the bleeding very soon to keep that uptrend alive. December silver was last down $1.13 at $23.39. an ounce
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 25.79.
The projected lower bound is: 19.38.
The projected closing price is: 22.58.
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 26 white candles and 24 black candles for a net of 2 white candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 13.4091. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 12 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 28.24. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 32 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 -193.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 16 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 31 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.352 at 22.518. Volume was 8,900% above average (trending) and Bollinger Bands were 42% wider than normal.
Open High Low Close Volume 22.870 22.903 21.660 22.518 9,113
Technical Outlook Short Term: Oversold Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 25.68 25.82 19.09 Volatility: 55 80 54 Volume: 911 182 46
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 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 14 periods. Our momentum oscillator is currently indicating that XAG= is currently in an oversold condition.