Silver 1 OZ 999 NY (XAG=X) gains supported by chart-based buying interest
Gold prices are posting good gains in early U.S. trading Monday, supported by chart-based buying interest as the near-term technical posture for the yellow metal is bullish. A weaker U.S. dollar index on this day is also working in favor of the precious metals market bulls. February gold futures were last up $8.30 an ounce at $1,294.10. March Comex silver was up $0.059 at $15.845 an ounce.
European stock markets were mostly weaker overnight, but Asian shares were mostly up. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins, on mild corrective pullbacks from strong gains posted Friday.
Trader and investor attitudes are generally upbeat to start the trading week, following the big gains on Wall Street Friday that followed a strong U.S. jobs report released Friday morning. Federal Reserve Chairman Jerome Powell also made comments on Friday that U.S. inflation levels are not problematic and that the Fed will be flexible in its monetary policy, which also assuaged the marketplace. The U.S. and China are holding face-to-face trade talks in China starting today, amid optimism the world’s two largest economies will make progress on their major trade dispute.
March silver futures bulls have the overall near-term technical advantage. A seven-week-old uptrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at last week’s high of $15.955 and then at $16.00. Next support is seen $15.645 and then at $15.50.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 15.00.
The projected upper bound is: 16.16.
The projected lower bound is: 15.25.
The projected closing price is: 15.70.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
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 77.5842. This is not an overbought or oversold reading. The last signal was a sell 0 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 73.45. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 87 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 97. This is not a topping or bottoming area. The last signal was a sell 0 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 24 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.011 at 15.680. Volume was 8,900% above average (trending) and Bollinger Bands were 115% wider than normal.
Open High Low Close Volume___
15.724 15.815 15.600 15.680 11,069
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.39 14.63 15.34
Volatility: 14 20 20
Volume: 1,107 221 55
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 2.2% above its 200-period moving average and is in an upward 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 20 periods. Our momentum oscillator is currently indicating that XAG= is currently in an overbought condition.
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