Gold and silver futures prices are solidly up in early U.S. trading Tuesday. Some short covering in the futures market and perceived bargain buying in the cash market are featured today, following recent solid losses that pushed gold to a five-month low and silver to a nine-week low on Monday. February gold futures were last up $29.00 at $1,810.10 and March Comex silver was last up $0.907 at $23.50 an ounce.
March silver futures bulls and bears are back on a level overall near-term technical playing field, but prices are still trending down. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $25.00 an ounce.
The next downside price objective for the bears is closing prices below solid support at the September low of $21.93. First resistance is seen at the overnight high of $23.62 and then at $24.00. Next support is seen at the overnight low of $22.665 and then at $21.93.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 23.63.
The projected upper bound is: 25.67.
The projected lower bound is: 22.09.
The projected closing price is: 23.88.
A black body occurred (because prices closed lower 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 79.6671. This is not an overbought or oversold reading. The last signal was a buy 4 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 49.33. 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 49 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 16. This is not a topping or bottoming area. The last signal was a buy 1 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 9 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.139 at 23.863. Volume was 8,900% above average (trending) and Bollinger Bands were 37% narrower than normal.
Open High Low Close Volume 23.990 24.040 23.774 23.863 2,193
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 23.50 24.05 20.62 Volatility: 45 47 58 Volume: 219 44 11
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 15.8% 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 7 periods.