Silver 1 OZ 999 NY (XAG=X) continue to weaken as investors turn to riskier assets

Silver 1 OZ 999 NY (XAG=X) continue to weaken as investors turn to riskier assets

Silver 1 OZ 999 NY (XAG=X) continue to weaken as investors turn to riskier assets

Improving sentiment around US-China trade relations, coupled with positive US economy data and poor physical demand in Indian markets, is turning investors towards riskier assets and away from the safe haven instrument. The change in investor perception is likely to further weaken prices of the yellow metal, which is nearing its monthly low levels.

International spot gold ended lower, on Monday, by 0.49 per cent at USD 1,454.9 per ounce. On Tuesday in opening trade, Comex gold for December quoted at USD 1,455 down by USD 1.9 an oz from previous close.

December silver futures bears have the overall near-term technical advantage. Yesterday silver traded in negative zone after risk appetite increased on the surprising news that China says it will step up its efforts to protect intellectual property rights.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 17.25.

The projected upper bound is: 17.75.

The projected lower bound is: 16.36.

The projected closing price is: 17.06.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black 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 48.5825. This is not an overbought or oversold reading. 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 44.54. 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 58 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 7. This is not a topping or bottoming area. The last signal was a buy 9 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 buy 3 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.177 at 17.076. Volume was 8,900% above average (trending) and Bollinger Bands were 1% narrower than normal.

Open     High      Low     Close     Volume___
16.900 17.107 16.780 17.076 38,540
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 17.03 17.51 16.17
Volatility: 11 25 24
Volume: 3,854 771 193

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 5.6% 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 into XAG= (bullish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 12 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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