SILVER 1 OZ 999 NY (XAG=X) fears of a marked global economic slowdown
The gold/silver ratio has risen to its highest level in roughly a quarter century, with silver suffering from both weakness in precious metals lately but also dragged down by pessimism about base metals.
“The silver price has been very weak in recent days – in both absolute and relative terms….The gold/silver ratio has risen to 86, its highest level in 25 years,” said a research note from analysts at Commerzbank.
The ratio measures how many ounces of silver it takes to buy an ounce of gold. When the number is rising, this reflects silver is underperforming relative to gold. Based on the Comex December futures contracts for gold and silver, the ratio stood at 85.88 around 10 a.m. EST.
Bart Melek, head of commodity strategy with TD Securities, pointed out that silver historically tends to be more volatile than gold. Gold has been on the defensive over the last week, giving back its gains from October so silver fell more disproportionately.
Comex December silver on Tuesday bottomed at $13.92, the contract’s weakest level since 2016. December gold fell as far as $1,201.40, a level not seen since Oct. 11.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 14.78.
The projected upper bound is: 14.86.
The projected lower bound is: 13.97.
The projected closing price is: 14.42.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 21 white candles and 28 black candles for a net of 7 black candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 67.2631. This is not an overbought or oversold reading. The last signal was a buy 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 50.17. 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 52 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 -11. This is not a topping or bottoming area. The last signal was a buy 1 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 sell 14 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.124 at 14.410. Volume was -0% below average (neutral) and Bollinger Bands were 8% wider than normal.
Open High Low Close Volume___
14.286 14.422 14.190 14.410 0
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 14.31 14.40 15.65
Volatility: 19 20 20
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 7.9% below its 200-period moving average and is in an downward trend. Volatility is high 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 7 periods.