Silver 1 OZ 999 NY (XAG=X) continues to see a lot of volatility

Silver 1 OZ 999 NY (XAG=X) continues to see a lot of volatility

Silver 1 OZ 999 NY (XAG=X) continues to see a lot of volatility

The Silver markets initially tried to rally during the trading session on Friday but continues to find a lot of resistance above at the downtrend line that forms the major wedge that I have marked out. Beyond that, there is support underneath, and I think we are going to continue to see a lot of volatility.

Silver markets got hammered on Friday as traders started to pay attention to the US/China trade situation, which of course has been a major driver of “risk appetite” in the markets, and it’s likely that we will continue to see headlines and tweets move the market back around. At this point, the wedge needs to be broken in one direction or the other, and it could lead to a rather volatile movement. The 50 day EMA is currently trading in the middle of the range for the day, so it’s likely that we will continue to see a lot of back-and-forth in the meantime, at least until we get some type of resolution to the US/China situation, be it good or bad.

To the downside, the $17.00 level should offer significant support from a structural and psychological standpoint, so if we do break down below there then I think the market will probably go racing towards the 200 day EMA. To the upside, if we were to break above the $18.00 level, then it’s likely that the market will go looking towards the $18.75 level, and then perhaps even the highs again that are closer to the $20.00 level. This is going to be based on fear or headline noise, so keep in mind that paying attention to the overall trend lines probably is the best way to trade this market as it’s essentially a “50-50 ball” at the moment.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 18.56.

The projected lower bound is: 16.57.

The projected closing price is: 17.57.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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.

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 46.8560. This is not an overbought or oversold reading. The last signal was a buy 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 47.70. 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 26 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 -27. This is not a topping or bottoming area. The last signal was a buy 7 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 24 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.060 at 17.540. Volume was -0% below average (neutral) and Bollinger Bands were 9% narrower than normal.

Open     High      Low     Close     Volume___
17.500 17.749 17.300 17.540 0
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 17.48 17.67 15.90
Volatility: 27 35 23
Volume: 0 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.

Summary

PREC.M.XAG= is currently 10.3% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 11 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH