SILVER 1 OZ 999 NY (XAG=X) Limit Exposure in Silver
Silver soared recently and white metal’s rally was accompanied by a huge volume. Those who are new to the precious metals market will probably immediately view this as bullish as that’s what the classic technical analysis would imply.
Before Wednesday’s and Thursday’s rallies, the upswing in silver didn’t seem significant at first sight, but the size of the volume suggested that we may have seen something important. It was not spectacular, but it was big when one compared it to the size of the volume in gold. The yellow metal moved higher on low volume, but what we saw on Tuesday in silver was rather average. Could it have been the case that the silver price action was somehow meaningful in relation to gold?
As a reminder, silver’s out-performance and mining stocks’ under-performance is something that we usually see right before the declines.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 16.63.
The projected upper bound is: 17.41.
The projected lower bound is: 16.45.
The projected closing price is: 16.93.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 76.1320. This is not an overbought or oversold reading. The last signal was a buy 28 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 64.51. 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 126 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 183.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 20 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 3 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.188 at 16.924. Volume was 8,900% above average (trending) and Bollinger Bands were 20% narrower than normal.
Open High Low Close Volume___
16.741 16.949 16.710 16.924 8,397
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 16.54 16.52 16.75
Volatility: 12 18 20
Volume: 840 168 42
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 1.1% 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 into XAG= (bullish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 1 periods.
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