Silver 1 OZ 999 NY (XAG=X) Bulls Still Have Chart Edge
Gold and silver prices are near steady in early-afternoon U.S. trading Wednesday and have traded both sides of unchanged today. Buying interest in both metals was limited by a higher U.S. dollar index today, as well as firmer U.S. stock indexes that hit two-month highs. However, the sellers remain timid due to the near-term bullish technical postures for both gold and silver. April gold futures were last up $0.70 an ounce at $1,314.70. March Comex silver was last down $0.035 at $15.655 an ounce.
The key economic data point of the day Wednesday was the U.S. consumer price index report for January, which came in at unchanged from December and up 1.6%, year-on-year. The consensus forecasts were up 0.1% from December and up 1.5% from January of 2018. The report again showed tame inflation.
March silver futures prices closed nearer the session low and hit a two-week low today. The silver bulls have the overall near-term technical advantage amid a two-month-old price uptrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the January low of $15.195. First resistance is seen at this week’s high of $15.83 and then at last week’s high of $15.935. Next support is seen at $15.50 and then at $15.30.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 15.37.
The projected upper bound is: 15.98.
The projected lower bound is: 15.20.
The projected closing price is: 15.59.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 6 black candles for a net of 3 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 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 25.1934. This is not an overbought or oversold reading. The last signal was a sell 7 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 48.70. 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 8 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 7 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 5 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.134 at 15.570. Volume was 8,900% above average (trending) and Bollinger Bands were 13% wider than normal.
Open High Low Close Volume___
15.704 15.815 15.550 15.570 8,733
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.78 15.33 15.22
Volatility: 11 16 19
Volume: 873 175 44
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 2.3% 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 1 periods.
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