Silver 1 OZ 999 NY (XAG=X) below the $17.00 level

Silver 1 OZ 999 NY (XAG=X) below the $17.00 level

Silver 1 OZ 999 NY (XAG=X) below the $17.00 level

Silver has started the week with losses. Currently, silver is trading at $16.96, down $0.65 or 2.16% the day.

Silver Slips on Demand Concerns

Silver continues to show sharp swings. The metal gained 4 percent last week, but has already given up about half of that amount on Monday. With the coronavirus raising fears about a global recession, silver has also taken it on the chin, as 60% of the demand for the metal is as an industrial component. As a precious metal, silver is also, to an extent, a safe haven, but gold is clearly the destination of choice for jittery investors. Gold prices remain around the lofty $1700 level, as it has reasserted its safe-haven status in times of crisis. Analysts have noted that the gold-to-silver ratio has hit an all-time record of 100:1 on Monday, as silver has joined the decline seen in stock markets, bond yields and other commodities.

The Federal Reserve rate cut last week put pressure on other central banks to lower rates, and Australian and Canadian central banks immediately responded with cuts of their own. Lower interest rates make the U.S. dollar less attractive, which is bullish for precious metals. Silver may benefit from a looser monetary policy, but due to demand for silver as an industrial component, the flow towards precious metals in this time of crisis has been benefiting gold more than silver.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 17.61.

The projected upper bound is: 17.77.

The projected lower bound is: 16.17.

The projected closing price is: 16.97.

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 27 white candles and 22 black candles for a net of 5 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 64.7674. 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 40.07. 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 sell 43 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 -76. This is not a topping or bottoming area. The last signal was a buy 3 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 7 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.323 at 16.990. Volume was 8,900% above average (trending) and Bollinger Bands were 80% wider than normal.

Open     High      Low     Close     Volume___
17.310 17.503 16.530 16.990 51,278
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 17.30 17.79 17.09
Volatility: 45 29 27
Volume: 5,128 1,026 256

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 0.6% below 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 6 periods.

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