Silver 1 OZ 999 NY (XAG=X) forming a “Morning Star pattern”, which is very bullish

Silver 1 OZ 999 NY (XAG=X) forming a “Morning Star pattern”, which is very bullish

Silver 1 OZ 999 NY (XAG=X) forming a “Morning Star pattern”, which is very bullish

Silver markets gapped higher on Friday, after forming a gapped lower on Thursday. This makes for what is known as a “Morning Star pattern”, which is very bullish. The fact that we are sitting on the uptrend line and the 50 day EMA also adds a lot of credence to the idea of going higher. I think ultimately we will probably go grinding towards the $16 level, which is the high recently, and of course a scene of massive amount of resistance. This market should continue to be very erratic, which is typical for silver anyway.

The market breaking down below the uptrend line and the 50 day EMA could send this market lower, perhaps down towards the $15.25 level, and then eventually the $15 level after that. Looking at this chart, I think you can expect a lot of choppiness and trouble, so I would be very cautious about my position size as silver does tend to be very noisy. This is a market that should continue to be bullish longer-term, but the question is whether or not we can find buyers yet. Overall, I think that silver will go higher over the longer-term but given enough time we need to understand the volatility is something that makes holding large positions very dangerous. This will be especially true as we have so many geopolitical concerns. If we can get the EUR/USD pair breaking to the upside, that would show the softness in the US dollar, sending precious metals higher.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 16.20.

The projected lower bound is: 15.41.

The projected closing price is: 15.80.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 29 white candles and 20 black candles for a net of 9 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 47.7135. This is not an overbought or oversold reading. The last signal was a sell 9 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 56.10. 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 10 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 -55. This is not a topping or bottoming area. The last signal was a buy 0 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 7 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.152 at 15.775. Volume was -0% below average (neutral) and Bollinger Bands were 5% wider than normal.

Open High Low Close Volume___
15.623 15.803 15.510 15.775 0

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

Moving Averages: 10-period 50-period 200-period
Close: 15.73 15.38 15.21
Volatility: 13 16 19
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 3.7% above 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 3 periods.

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