Silver 1 OZ 999 NY (XAG=X) have regained some technical strength
Gold and silver prices are moderately up in early U.S. trading Tuesday, on some short covering by the shorter-term futures traders and perceived bargain hunting following recent pressure. Another mild U.S. inflation report is also friendly for the precious metals markets. Bulls have regained some technical strength early this week. April gold futures were last up $6.90 an ounce at $1,298.00. May Comex silver was last up $0.166 at $15.435 an ounce.
The key U.S. economic data point early this week is today’s just-released consumer price index report for February, which came in at up 0.2% from January and was in line with market expectations. On an annual basis, CPI was up 1.5%–the lowest reading in 2.5 years. This continues a theme of low and non-problematic inflation in the major world economies, which is allowing the central banks to keep interest rates low. The gold and silver markets up-ticked just a bit following the report, which favors the monetary policy doves.
May silver futures bulls have regained the slight overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.75 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $14.985. First resistance is seen at $15.50 and then at $15.545. Next support is seen at the overnight low of $15.31 and then at this week’s low of $15.225.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 15.88.
The projected lower bound is: 15.03.
The projected closing price is: 15.45.
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 27 white candles and 22 black candles for a net of 5 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 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 93.2631. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 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 48.70. 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 28 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 2. This is not a topping or bottoming area. The last signal was a buy 3 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 sell 10 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.016 at 15.456. Volume was 8,900% above average (trending) and Bollinger Bands were 41% wider than normal.
Open High Low Close Volume___
15.400 15.477 15.400 15.456 4,092
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.26 15.62 15.13
Volatility: 21 17 19
Volume: 409 82 20
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 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 into XAG= (bullish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 8 periods.