Gold, Silver 1 OZ 999 NY (XAG=X) continue to weaken as investors turn to riskier assets

Gold, Silver 1 OZ 999 NY (XAG=X) continue to weaken as investors turn to riskier assets

Gold, Silver 1 OZ 999 NY (XAG=X) continue to weaken as investors turn to riskier assets

Silver markets initially fell during the trading session on Monday to kick off the week but have turned around to show signs of life again. At that juncture, we also have a relatively significant uptrend line that has proven itself during the day, so it will be interesting to see where we go next. Clearly, we are at an inflection point, as silver has been beaten down over the last couple of months, but let’s be honest here: the market had gained 15% during the month of August alone.

Looking at this chart, the uptrend line underneath should continue to be support, but underneath there we also have the 200 day EMA. At this point, the market is likely to find plenty of buyers there as well. If we were to break down below the 200 day EMA, the market could go much further as it is a longer-term indication of support, or in that case the lack of it.

To the upside, I anticipate that the 50 day EMA is going to offer a bit of resistance, so once you get above there, then the market becomes much more bullish. At this point though, I don’t expect it to happen very easily, as I recognize the overall concern around the world when it comes to geopolitics, global growth, and the like. The silver market has saved itself so far, but if we get an impulsive candlestick to the downside, that would be a very negative look. For what it’s worth, you can see that there are three clear areas of extreme negative impulsivity, so that does cause some type of concern.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 17.25.

The projected upper bound is: 17.66.

The projected lower bound is: 16.29.

The projected closing price is: 16.98.

Candlesticks

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 21 white candles and 29 black candles for a net of 8 black candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 44.0060. This is not an overbought or oversold reading. The last signal was a sell 3 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 42.34. 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 59 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 25. This is not a topping or bottoming area. The last signal was a buy 10 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 4 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.078 at 16.990. Volume was 8,900% above average (trending) and Bollinger Bands were 5% narrower than normal.

Open     High      Low     Close     Volume___
17.068 17.099 16.890 16.990 36,155
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 17.03 17.49 16.18
Volatility: 10 25 24
Volume: 3,616 723 181

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.

Summary

PREC.M.XAG= is currently 5.0% 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 13 periods.

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