Silver 1 OZ 999 NY (XAG=X) getting close to a major trendline

Silver 1 OZ 999 NY (XAG=X) getting close to a major trendline

Silver 1 OZ 999 NY (XAG=X) getting close to a major trendline

Silver markets fell during the trading session on Wednesday, as we continue to see bits and pieces of weakness. Having said that, the market looks as if it is getting close to a major trendline, which of course will attract a lot of attention.

Silver markets fell a bit during the trading session on Wednesday, showing signs of weakness again. Ultimately, the market looks very likely to continue drifting a little bit lower to reach towards the significant uptrend line just below. It should also be noted that the market is currently trading between the 50 day EMA and the 200 day EMA, which of course still defines itself as an uptrend even though we have broken down below the 50 day EMA.

All things being equal, I would anticipate some type of bounce near the uptrend line and I do believe that silver will eventually continue to go higher. Central banks around the world continue to loosen monetary policy and that is good for precious metals in general but we are starting to see a little bit more of a “risk on” attitude around the market so that does suggest that perhaps precious metals will face a little bit of pressure, but the longer-term trend is still positive, and for a whole host of other reasons than the coronavirus situations. To the downside, if we were to break down below the 200 day EMA, then it’s likely that the market could reach towards the $16.50 level. All things being equal though, I do think it’s only a matter of time before value hunters come back into silver as it has been such a strong performer over the last couple of years. At this point, I don’t have any interest in shorting but will let you know if that changes.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 18.07.

The projected lower bound is: 16.88.

The projected closing price is: 17.48.

Candlesticks

A black body occurred (because prices closed lower 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 30 white candles and 19 black candles for a net of 11 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 41.6756. This is not an overbought or oversold reading. The last signal was a buy 20 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 44.00. 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 25 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 -108.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 22 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.161 at 17.471. Volume was 8,900% above average (trending) and Bollinger Bands were 31% narrower than normal.

Open     High      Low     Close     Volume___
17.633 17.665 17.420 17.471 20
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 17.70 17.60 16.82
Volatility: 21 21 24
Volume: 2 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 3.9% above 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 10 periods.

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