Silver 1 OZ 999 NY (XAG=X) Could Be Setting Up to Surge

Silver 1 OZ 999 NY (XAG=X) Could Be Setting Up to Surge

Silver 1 OZ 999 NY (XAG=X) Could Be Setting Up to Surge

Supermarkets have rallied a bit during the day on Thursday, showing signs of strength yet again. This is a longer-term uptrend and should continue to follow the same path. The 50-day EMA underneath obviously causing a lot of attention as well.

Silver markets have rallied a bit during the trading session on Thursday, testing significant resistance that we have seen over the last couple of weeks. The $18 level continues to be an area that people will pay attention to as resistance, so keep in mind that the market will probably continue to see a lot of volatility in this area but if we are willing and able to break above the $18 level, the market should continue to go much higher. At this point in time, the market should then go looking towards the $18.75 level.

To the downside there is an uptrend line that should continue to cause the market to reach towards higher levels, as it keeps the uptrend intact. At this point in time it’s likely that the ascending triangle is going to kick off at the $18 level, but we may need several attempts to make it happen.

The 50-day EMA continues to offer support, and of course central banks around the world are doing the same as they ease monetary policy. Silver will take its lead from gold, or vice versa as one tends to give a heads up on the other one, and gold has seen a strong move during the day. Getting above $18 will be the next task ahead, but it’s only a matter of time before that happens. Once it does, the market could rip to the upside rather rapidly.

Otherwise, if we were to break down below the $17 level, that could open up the door to much lower levels such as the $16.37 level which is where the 200-day EMA currently sets.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 18.77.

The projected lower bound is: 16.86.

The projected closing price is: 17.81.

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 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 25 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 60.3206. This is not an overbought or oversold reading. The last signal was a buy 16 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 54.49. 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 35 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 123.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 16 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 0.249 at 17.804. Volume was 8,900% above average (trending) and Bollinger Bands were 60% narrower than normal.

Open     High      Low     Close     Volume___
17.557 17.837 17.437 17.804 30,269
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 17.55 17.79 15.99
Volatility: 14 34 23
Volume: 3,027 605 151

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 11.4% 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 20 periods.

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