SILVER 1 OZ 999 NY (XAG=X) Bulls Working To Stabilize Prices
Like gold and many other commodities over recent weeks, the price of silver remains close to its lows. Silver is both a precious and an industrial metal and its long history of incredible price volatility at times has caused speculators to flock to the metal when it looks like a price explosion or implosion could be in the cards.
Silver also has a long history of sending lots of market participants the wrong signal at the wrong time which is why selling tends to intensify near lows and buying near highs.
As the weekly chart highlights, the silver fell to a marginally lower low in mid-July. Technical support stood at the July 2017 bottom at $15.15 per ounce. Last year during July, a flash crash in the silver market during the early hours of Asian trading when the silver market has the least liquidity, took the price to the level that stood as support. While many longs likely placed stop orders just below the price and others could have piled in on the short side on a break below $15.15, silver only made it down to a low of $15.135 before bouncing back to just above that level.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 15.85.
The projected lower bound is: 14.95.
The projected closing price is: 15.40.
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 26 white candles and 24 black candles for a net of 2 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 58.6528. This is not an overbought or oversold reading. The last signal was a buy 15 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 43.43. 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 15 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 8. This is not a topping or bottoming area. The last signal was a buy 3 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 10 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.008 at 15.420. Volume was 8,900% above average (trending) and Bollinger Bands were 49% narrower than normal.
Open High Low Close Volume___
15.414 15.439 15.400 15.420 5
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 15.38 15.95 16.46
Volatility: 10 18 19
Volume: 1 0 0
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 6.3% below its 200-period moving average and is in an downward trend. Volatility is low 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 35 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.
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