Silver 1 OZ 999 NY (XAG=X) Finding Support

Silver 1 OZ 999 NY (XAG=X) Finding Support

Silver 1 OZ 999 NY (XAG=X) Finding Support

Silver markets have dropped slightly on the opening gap Monday, but for the most part did nothing during the holidays session in America. With that being the case it’s very likely that this market will continue to be quiet, but I do believe that it is only a matter of time before we have to make some type of decision. What I find interesting is that the massive shooting star from Thursday that tested the previous uptrend line, showing signs of resistance, followed by a hammer. Quite often, this means that the market will simply “kill time”, grinding sideways in order to feel comfortable in this area before breaking out further to the upside.

However, if we are to break down below the bottom of the hammer from the Friday session, that means that we probably need to pull back a bit in order to find enough buyers. We also have the 50 day EMA getting ready to cross above the 200 day EMA, in a phenomenon known as the “golden cross.” That is typically something that bullish traders like, and therefore I believe it is only a matter of time before we see longer-term traders get involved as well. I’m looking for value, so if we break down below the bottom the hammer from the trading session on Monday, I will probably simply wait for support and a bounce to take advantage of. I don’t have any interest in shorting, at least not right now.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 18.06.

The projected lower bound is: 16.93.

The projected closing price is: 17.49.

Candlesticks

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 28 white candles and 21 black candles for a net of 7 white 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 24.8189. This is not an overbought or oversold reading. The last signal was a buy 10 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 43.48. 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 15 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 -202.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 1 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 sell 12 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.052 at 17.486. Volume was 8,900% above average (trending) and Bollinger Bands were 33% narrower than normal.

Open     High      Low     Close     Volume___
17.434 17.528 17.350 17.486 30,530
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 17.85 17.46 16.68
Volatility: 26 20 24
Volume: 3,053 611 153

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 4.9% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect very strong flows of volume out of XAG= (bearish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 0 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.