Silver 1 OZ 999 NY (XAG=X) continue to see a lot of negativity out there

Silver 1 OZ 999 NY (XAG=X) continue to see a lot of negativity out there

Silver 1 OZ 999 NY (XAG=X) continue to see a lot of negativity out there

Silver markets have been on fire as of late, but quite frankly they have gotten way ahead of themselves. We have had a couple of days of extreme negativity, but at this point it’s likely that the trend line underneath will be tested, perhaps even the 50 day EMA.

I think at this point it’s likely that we see buyers somewhere near the trend line or the 50 day EMA, and therefore take advantage of which should be perceived as value closer to the $18.00 level. There’s also the gap just below there as well, so this could be a sloppy trend line test.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 17.00.

The projected upper bound is: 18.90.

The projected lower bound is: 17.26.

The projected closing price is: 18.08.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 18.1730. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 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 54.83. 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 2 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 sell 2 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 0 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.136 at 18.024. Volume was 8,900% above average (trending) and Bollinger Bands were 144% wider than normal.

Open     High      Low     Close     Volume___
18.170 18.303 17.890 18.024 25,863
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 18.51 16.75 15.55
Volatility: 47 30 21
Volume: 2,586 517 129

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 15.9% above its 200-period moving average and is in an upward 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 bullish on XAG= and have had this outlook for the last 68 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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