SILVER 1 OZ 999 NY (XAG=X) edges lower
Market turmoil and a weaker U.S. dollar are setting the stage for a significant rally in the precious metal – one that will shrink the gold-to-silver ratio and make silver holders a killing in the process.
As silver plays catch-up with gold, the metal’s near-term outlook is looking increasingly bullish…
A Weak Dollar Is Setting the Stage for Silver’s Rally
Last week, silver struggled as the U.S. Dollar Index (DXY) rallied to a new recent high of 96.14.
That was simply too much headwind for silver prices, which caved to the pressure and sold down to $14.24 on Tuesday (Oct. 9).
Wednesday (Oct. 10) was rough on stocks, with the S&P 500 dropping 95 points (3.3%) and the Dow losing 830 points (3.15%), while the 10-year Treasury rose to a record 3.22% yield.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 15.14.
The projected lower bound is: 14.14.
The projected closing price is: 14.64.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 6 black candles for a net of 3 black candles. During the past 50 bars, there have been 21 white candles and 28 black candles for a net of 7 black 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 72.0094. This is not an overbought or oversold reading. The last signal was a buy 3 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 56.28. 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 29 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 99. This is not a topping or bottoming area. The last signal was a sell 7 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 23 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.005 at 14.653. Volume was 8,900% above average (trending) and Bollinger Bands were 34% narrower than normal.
Open High Low Close Volume___
14.698 14.847 14.570 14.653 11,399
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 14.51 14.50 15.94
Volatility: 18 22 20
Volume: 1,140 228 57
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 8.1% below its 200-period moving average and is in an upward trend. Volatility is 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 13 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.