Silver 1 OZ 999 NY (XAG=X) failed to follow gold higher
SILVER PRICES failed to follow gold higher again on Tuesday, missing out on a gain for the 4th session running as gold slipped $5 from an overnight pop to $1300 per ounce amid worsening US-led trade war with Europe and China.
Chinese manufacturers of solar-energy equipment – until 2018 the fastest-growing sector of silver demand – are set to suffer still further under Trump’s latest tariff hikes, says Shayne Heffernan.
“The US decision [in 2018] to add a 30% tariff on foreign-produced solar panels [also] had a negative effect on its domestic solar industry, which heavily relies on cheap imports,” claims solar-energy NGO consultant James Ellsmoor, writing at Forbes and noting that the US solar industry has shed 18,000 jobs since its ‘banner year’ of 2016.
Global silver use in new photo-voltaic cells fell almost 10% in 2018 according to data produced by analysts Refinitiv for miners-and-refiners group The Silver Institute.
Back in the financial markets, the MSCI World Index closed Monday at its lowest since mid-March, and Asian stock markets today extended last night’s steep losses on Wall Street.
European equities rallied 0.6% by lunchtime as UK jobs data and Eurozone industrial output figures came in just ahead of analyst forecasts.
Silver prices remained stuck below $14.80, helping drive the Gold/Silver Ratio of the two “monetary metals” relative prices up to new 26-year records above 88.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 15.14.
The projected lower bound is: 14.42.
The projected closing price is: 14.78.
A white body occurred (because prices closed higher 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 27 white candles and 21 black candles for a net of 6 white candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend (which appears to be the case with PREC.M.XAG=). It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend, it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
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 44.5455. This is not an overbought or oversold reading. The last signal was a buy 31 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 42.85. 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 72 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 -39. This is not a topping or bottoming area. The last signal was a buy 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 6 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.020 at 14.785. Volume was 8,900% above average (trending) and Bollinger Bands were 47% narrower than normal.
Open High Low Close Volume___
14.750 14.854 14.690 14.785 14,705
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 14.79 15.08 14.92
Volatility: 17 15 19
Volume: 1,471 294 74
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 0.9% below 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 52 periods.
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