SILVER 1 OZ 999 NY (XAG=X) look forward to the Fed’s expected December rate hike
After a week that saw the price of silver struggle to notch any gains, its most recent trading day made up for its latest challenge.
The Buenos Aires G-20 meetings provided for the spark that silver prices needed to rally.
Washington and Beijing announced a “90-day truce” in their trade war, whereby both sides have promised not to escalate tariffs any further as they work diligently to resolve their disputes.
That clearly took buying pressure away from the dollar, allowing broad-based gains for commodities, with silver being no exception.
The metal jumped nearly 2% on Monday, joining gold, oil, base metals, and general equities.
Silver prices will now look forward to the Fed’s expected December rate hike, which could provide another catalyst for the metal to rally higher.
Before we look at how the FOMC meeting will impact the price of silver, here’s how the metal is moving now…
A Closer Look at the Movement in the Price of Silver
The silver price initially popped on Tuesday, Nov. 27, to touch the $14.40 level before selling off to bottom at $14.06 near 1 p.m. That damage came as the U.S. dollar index (DXY) reacted, running up to 97.35 as Fed Vice Chair Richard Clarida said the Fed should continue to raise rates gradually while monitoring new economic data.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 15.01.
The projected lower bound is: 14.07.
The projected closing price is: 14.54.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 20 white candles and 29 black candles for a net of 9 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 64.3818. This is not an overbought or oversold reading. The last signal was a buy 4 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 55.68. 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 64 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 156.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 13 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 1 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.171 at 14.541. Volume was 8,900% above average (trending) and Bollinger Bands were 21% narrower than normal.
Open High Low Close Volume___
14.380 14.663 14.346 14.541 11,080
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 14.33 14.44 15.51
Volatility: 19 21 20
Volume: 1,108 222 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 6.3% below its 200-period moving average and is in an downward trend. Volatility is low 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 19 periods.
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