Silver 1 OZ 999 NY (XAG=X) could be ready to move higher
Just when it looked like silver was heading for a test of $14 per ounce and perhaps a test of the November 2018 low at $13.86, or even the December 2015 bottom at $13.635, the price turned around at the end of May and put in a bullish reversal on the weekly chart, by only two ticks.
Silver fell to a low at $14.245 during the week of May 28, which was eight cents below the prior week’s low, and closed the week at $14.56 per ounce.
The high from the previous week was at $14.55. While the move was not overly convincing, it did come on elevated volume which is typically a validation of the bullish trading pattern.
Last week, silver traded above the $15 per ounce level for the first time since the final week of April as gold posted an even more significant gain. Silver had a bullish week, and time will tell if the price action is finally the beginning of a long-overdue recovery in the silver market or if it is set up for yet another disappointment and failure.
If silver is now ready to blast off to the upside, it could be the perfect time for the Velocity Shares 3XLong Silver ETN product (USLV) but be careful because if silver is set up for another failure, the product will lose value quickly.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 15.32.
The projected lower bound is: 14.65.
The projected closing price is: 14.99.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 29 white candles and 19 black candles for a net of 10 white 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 69.4192. This is not an overbought or oversold reading. The last signal was a sell 1 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 61.97. 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 14 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 155.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 11 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 6 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.140 at 14.990. Volume was -0% below average (neutral) and Bollinger Bands were 5% narrower than normal.
Open High Low Close Volume___
14.887 15.149 14.810 14.990 0
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 14.67 14.83 14.90
Volatility: 15 14 17
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.
PREC.M.XAG= is currently 0.6% above its 200-period moving average and is in an upward 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 bullish on XAG= and have had this outlook for the last 2 periods.