Silver 1 OZ 999 NY (XAG=X) at the 50% Fibonacci retracement level

Silver 1 OZ 999 NY (XAG=X) at the 50% Fibonacci retracement level

Silver 1 OZ 999 NY (XAG=X) at the 50% Fibonacci retracement level

Silver markets initially rallied during the trading session on Wednesday, showing signs of exhaustion. By forming a bit of a shooting star, that is a very negative sign for traders, and it’s likely that the $15.60 level is going to continue to cause a significant amount of resistance. Ultimately, even though the Gold markets look very bullish, it appears that silver is starting to diverge from gold. If that’s the case, one of these precious metals markets are rapidly becoming mispriced. Granted, silver does tend to lag gold, so there is the possibility that silver place catch up.

The other scenario of course is that silver leads the way lower, and at this point it’s possible that makes the most sense. Were at the 50% Fibonacci retracement level in the silver market, at the $15.50 level, which of course is a large, round, psychologically significant figure, and of course an area that has caused quite a bit of noise. At this point, if we break down below the $15.45 level, we probably have further downside ahead. Alternately, if we break above the $15.60 level, we will more than likely continue to go much higher, perhaps the $16.00 level.

Ultimately, I think we are going to see a lot of choppiness, and therefore silver is going to be difficult in the short term. I suspect that if you wish to buy precious metals, it’s gold you should be attracted to. If you’re looking to sell precious metals, silver might be your market.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 15.63.

The projected lower bound is: 14.79.

The projected closing price is: 15.21.

Candlesticks

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 26 white candles and 23 black candles for a net of 3 white 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 74.3645. 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 41.82. 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 29 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 -29. This is not a topping or bottoming area. The last signal was a buy 4 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 sell 11 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.226 at 15.224. Volume was 8,900% above average (trending) and Bollinger Bands were 43% wider than normal.

Open High Low Close Volume___
15.430 15.460 15.180 15.224 6,195

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 15.22 15.61 15.12
Volatility: 22 17 19
Volume: 620 124 31

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 0.7% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume out of XAG= (bearish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 9 periods.

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