Silver 1 OZ 999 NY (XAG=X) Looking To Test Trendline
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.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 18.21.
The projected lower bound is: 17.05.
The projected closing price is: 17.63.
A black body occurred (because prices closed lower 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 30 white candles and 19 black candles for a net of 11 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 35.0051. This is not an overbought or oversold reading. The last signal was a buy 22 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 47.72. 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 27 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 -38. This is not a topping or bottoming area. The last signal was a buy 1 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 24 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.017 at 17.618. Volume was 8,900% above average (trending) and Bollinger Bands were 32% narrower than normal.
Open High Low Close Volume___
17.628 17.630 17.617 17.618 101
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.64 17.63 16.84
Volatility: 18 21 24
Volume: 10 2 1
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 4.6% 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 12 periods.