With haven buying the day’s theme on mutating Covid-19 concerns, both gold and silver have staged impressive rallies this morning. XAU/USD has risen 0.85% to USD1897.35, just shy of resistance atUSD1900.00 an ounce. Silver has leapt 3.30% to USD26.6560 an ounce. That has left the gold/silver (mint) ratio at intriguing levels.
The mint ratio today has fallen through support around 71.35 to 71.15. A daily close at these levels or lower would be a bullish development for precious metals, suggesting further falls and that silver will lead anther spike higher in precious metals prices. One caveat is that today’s rally has left silver’s RSI in overbought territory, and the mint ratio slightly oversold. That implies that today’s gains at these levels for gold and silver may require a period of consolidation for the rest of the session.
Gold itself has resistance at USD1900.00 an ounce, which is more psychological than technical. More importantly, the 100-day moving average (DMA) lies just above at USD1904.70 an ounce. A daily close above that would be a positive technical development, opening the road ahead to further gains to USD1970.00 an ounce over the holiday period.
Both gold and silver are likely to find plenty of willing buyers on dips today in this defensive environment. Gold has support at USD1875.00 an ounce, and silver has support at USD26.0000 an ounce.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 27.73.
The projected lower bound is: 24.74.
The projected closing price is: 26.23.
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 29 white candles and 21 black candles for a net of 8 white 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 69.4496. This is not an overbought or oversold reading. The last signal was a sell 0 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 67.13. 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 63 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 128.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 13 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.027 at 26.190. Volume was 8,900% above average (trending) and Bollinger Bands were 17% wider than normal.
Open High Low Close Volume 26.166 26.363 26.080 26.190 2,734
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 24.96 24.31 21.22 Volatility: 35 39 53 Volume: 273 55 14
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 23.4% above its 200-period moving average and is in an upward 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 bullish on XAG= and have had this outlook for the last 10 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.