Will FOMC Minutes Shake up Silver 1 OZ 999 NY (XAG=X)?
Silver is showing little movement on Wednesday. In the European session, the metal is trading at $17.14, up $0.01 or 0.11% on the day. The sole U.S. indicator on the calendar is crude oil inventories.
Will FOMC Minutes Shake up Silver?
With a light economic calendar on Wednesday, the markets will be focused on the Federal Reserve minutes, which will provide investors with details from the October 30 meeting. At that meeting, the Fed lowered the benchmark rate to 1.75%, which was the third successive cut in as many meetings.
At the same time, the October cut was considered hawkish, as policymakers sent a signal that they were taking a pause from trimming rates. The Fed said that the economy was “in a good place”, but also stated that “uncertainties about the outlook remain”. Will we get more mixed signals from the minutes? Any hints about future rate cuts could have a strong impact on silver prices, as precious metals such as gold and silver are sensitive to rate movement.
Silver Technical Analysis
Silver remains range-bound, as the metal is showing little appetite to stray from the 17.00 level. However, the lack of a trend for over a week could signal that silver is due for a breakout sometime soon. There is immediate resistance at 17.25 and this line remains vulnerable. This is closely followed by the 50-EMA, which is currently at 17.38. Above, we find resistance at 17.75.
On the downside, there is support at 16.50. Note that the 200-EMA is currently at the same level. Below, there is support at the round number of 16.00. The silver price forecast is for more of the same, as the trend is neutral.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 17.27.
The projected upper bound is: 17.86.
The projected lower bound is: 16.32.
The projected closing price is: 17.09.
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 23 white candles and 27 black candles for a net of 4 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 84.8689. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 43.59. 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 sell 54 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 -20. This is not a topping or bottoming area. The last signal was a buy 5 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 10 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.026 at 17.110. Volume was 8,900% above average (trending) and Bollinger Bands were 8% wider than normal.
Open High Low Close Volume___
17.140 17.203 17.000 17.110 49,102
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 16.97 17.57 16.15
Volatility: 22 28 24
Volume: 4,910 982 246
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 5.9% 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 8 periods.