Silver 1 OZ 999 NY (XAG=X) formed a hammer potential bullish indicator

Silver 1 OZ 999 NY (XAG=X) formed a hammer potential bullish indicator

Silver 1 OZ 999 NY (XAG=X) formed a hammer potential bullish indicator

Silver markets initially fell during the trading sessions that made up the week, but at this point it’s still a bit early to say. The fact that we formed a hammer is a very bullish sign though so keep that in mind. I do believe that if we break above the trend line, it’s very likely that we will then test the $14.85 level. A break above that level opens up the door to $15.00, and then perhaps even further to the upside than that.

One thing that’s worth paying attention to is the fact that the Gold markets broke out during the week, and silver will typically follow given enough time. This is a bit of a safety play, but silver will lag at gold considering that gold is a pure precious metal play when silver has a lot to do with industrial demand as well.

If we did break down below the weekly candle stick, we could open the door to the $14.00 level, but quite frankly Friday has changed the attitude of silver enough to have people rethink what’s going next. I do recognize that silver is very choppy and difficult to deal with, so this longer-term play is something that you should use very little leverage with and think of more as an investment than anything else. To me, it looks as if silver is ready to continue higher if the situation stays the same.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 14.92.

The projected upper bound is: 14.90.

The projected lower bound is: 14.21.

The projected closing price is: 14.55.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 27 white candles and 21 black candles for a net of 6 white 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 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 62.6723. This is not an overbought or oversold reading. The last signal was a buy 7 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 45.57. 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 9 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 23. This is not a topping or bottoming area. The last signal was a buy 6 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 1 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.055 at 14.570. Volume was -0% below average (neutral) and Bollinger Bands were 9% narrower than normal.

Open High Low Close Volume___
14.500 14.678 14.440 14.570 0

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 14.49 14.87 14.90
Volatility: 13 15 18
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.

Summary

PREC.M.XAG= is currently 2.2% below 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 65 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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