Silver price shows slight bearish bias after approaching our waited target at 26.88, noticing that stochastic gets rid of its negative momentum to head towards the oversold areas, waiting to motivate the price to resume the main bullish trend, which its targets begin by surpassing the mentioned level to rally towards 27.65 as a next station.
Therefore, the bullish trend scenario will remain valid and active for today conditioned by the price stability above 25.06.
The expected trading range for today is between 25.80 support and 27.00 resistance.
Looking at silver prices Shayne Heffernan, CEO and Founder of HEFFX remains bullish on the precious metal.
“I always say that silver is gold on steroids and I’m wildly bullish on gold,” he said.
Not only does he see silver prices pushing back to its record highs above $50 an ounce, but Shayne Heffernan said that there is no reason why the metal can’t get to $100 an ounce, especially as gold prices continue to rally.
“Once silver stabilizes and gold is going up as some monetary metals, silver then starts to follow gold and then it gets octane and it surpasses gold,” he said. “That’s what happened during the financial crisis and we are starting to see that again.”
Not only is silver benefiting as a monetary metal as central banks around the world continue to pump liquidity into financial markets, but Shayne Heffernan said that the metal will also benefit as the global economy recovers from the COVID-19 pandemic.
Looking at gold prices Shayne Heffernan noted that the precious metal was in a bull market before the world was hit by the coronavirus and he added that it will remain in a bull market after the virus is dealt with.
“All the pandemic has served to do is to make people now understand that the question of money and what is money when clearly it can be printed at will, he said. “The debasement of currencies is obviously very, very bullish for gold.”
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 24.30.
The projected upper bound is: 28.04.
The projected lower bound is: 24.91.
The projected closing price is: 26.48.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
Separating lines occurred. If the lines occur during an uptrend (which appears to be the case with PREC.M.XAG=) and the first line is black and the second is white (which is the case with PREC.M.XAG=) then this suggests that the uptrend should continue.
If the separating lines occur during a downtrend and the first line is white and the second is black (which is not the case with PREC.M.XAG=) then this suggests that the downtrend should continue.
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 69.3522. This is not an overbought or oversold reading. The last signal was a sell 6 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 65.07. 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 69 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 89. This is not a topping or bottoming area. The last signal was a sell 6 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 19 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.271 at 26.449. Volume was 8,900% above average (trending) and Bollinger Bands were 9% wider than normal.
Open High Low Close Volume 26.190 26.480 26.110 26.449 5,892
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 25.91 24.47 21.60 Volatility: 34 41 52 Volume: 589 118 29
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 22.5% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
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 16 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.