SILVER 1 OZ 999 NY (XAG=X) Buy Opportunity Especially In Silver Miners
With recent global market weakness we believe that two things will happen.
First, gold will confirm its August bottom, and will rise from here. That’s a forecast based on our leading indicators combined with the chart setup (rounding bottom).
Second, silver miners likely will outperform, especially if the S&P 500 continues to trade sideways for a while (not a 2008-alike market crash though).
When it comes to silver miners we stay focused on its ratio to the S&P 500, a ratio that hardly anyone else monitors. The ratio chart is the one below, and it sends a very clear message: a mega double bottom formation is bullish, and a small rise of SIL ETF combined with a small loss of the S&P 500 will create breakout on this chart in favor of silver miners. If and once this happens we believe we will see a replay of the epic 2016 silver stocks rally, an opportunity that not any investors wants to miss.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 15.18.
The projected lower bound is: 14.17.
The projected closing price is: 14.68.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 22 white candles and 27 black candles for a net of 5 black 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 74.7765. This is not an overbought or oversold reading. The last signal was a buy 2 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 57.24. 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 28 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 105.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 22 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.139 at 14.690. Volume was 8,900% above average (trending) and Bollinger Bands were 31% narrower than normal.
Open High Low Close Volume___
14.570 14.776 14.560 14.690 12,119
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 14.51 14.51 15.95
Volatility: 19 22 20
Volume: 1,212 242 61
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 7.9% below its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect very strong flows of volume into XAG= (bullish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 12 periods.