Silver 1 OZ 999 NY (XAG=X) Investors focusing on the Persian Gulf Tensions

Silver 1 OZ 999 NY (XAG=X) Investors focusing on the Persian Gulf Tensions

Silver 1 OZ 999 NY (XAG=X) Investors focusing on the Persian Gulf Tensions

Gold prices are firmly higher in midday U.S. trading Thursday, boosted on safe-haven buying interest on news of another attack on big ships in the Persian Gulf region. August gold futures were last up $6.90 an ounce at $1,343.70. July Comex silver prices were last up $0.127 at $14.88 an ounce.

The marketplace is a bit uneasy late this week after reports two more ships in the Persian Gulf area (this time in the Gulf of Oman) were attacked by smaller gunboats, and/or possibly even a torpedo. U.S. Navy ships are reportedly now protecting some oil tankers in the region. Oil prices are higher today on the news. Right now tensions in markets are not real high, but this situation could escalate very quickly if Iran and the U.S. have a direct military confrontation. Gold prices would probably spike sharply higher in such a case.

Gold gained today despite European and Asian stock indexes that were mostly firmer. The U.S. stock indexes are also modestly higher at midday. Notions of more accommodative monetary policies from the world’s major central banks, amid generally very low inflationary pressures globally, are supporting world stock markets recently. That’s also supportive for the meteals.

July silver futures prices closed near the session high today. The silver bears have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $15.15 an ounce.

The next downside price breakout objective for the bears is closing prices below solid support at the May low of $14.265. First resistance is seen at $15.00 and then at $15.15. Next support is seen at this week’s low of $14.625 and then at last week’s low of $14.565. 

Overall, the bias in prices is: Sideways.

The projected upper bound is: 15.26.

The projected lower bound is: 14.53.

The projected closing price is: 14.90.

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 29 white candles and 19 black candles for a net of 10 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 32.5069. This is not an overbought or oversold reading. The last signal was a buy 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 56.52. 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 18 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 73. This is not a topping or bottoming area. The last signal was a sell 3 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 10 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.165 at 14.900. Volume was -0% below average (neutral) and Bollinger Bands were 2% narrower than normal.

Open High Low Close Volume___
14.760 14.970 14.690 14.900 0

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

Moving Averages: 10-period 50-period 200-period
Close: 14.78 14.80 14.91
Volatility: 18 16 17
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 0.1% below its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect very strong flows of volume into XAG= (bullish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 6 periods.

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