Silver 1 OZ 999 NY (XAG=X) looks as if it is going to try to break above the $18.50 level
Silver markets initially fell during trading on Tuesday, as the US dollar got a bit of a bit. Having said that, the market has turned right back around to show signs of life again, and it looks as if it is going to try to break above the $18.50 level. Breaking above there could send this market towards the $19.00 level, something that I think does happen given enough time. However, if we get a bit of profit-taking going into the weekend, you may have an opportunity to buy silver closer to the $18.00 level, or possibly even the 50 day EMA if you are patient enough. Either way, I do believe that silver continues to go higher, mainly because of loose monetary policy around the world.
Precious metals have been getting a bit, and you could make an argument for silver trying to play catch up with gold, but at the end of the day it doesn’t really matter which one you are playing, precious metals in general are to be bought and not sold at this point. Gold has rallied rather significantly, dragging silver right along with it.
It would take some type of major turnaround in attitude and risk appetite for gold and silver to rollover, and that’s not something I see with all of the fears about the coronavirus going on right now. That being said though, the market has rallied quite stringently over the last three sessions and is overbought. Because of this, look for value and take advantage of but if you get the opportunity.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 18.97.
The projected lower bound is: 17.82.
The projected closing price is: 18.39.
A black body occurred (because prices closed lower than they opened).
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 31 white candles and 18 black candles for a net of 13 white candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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 92.2900. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 26 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 62.51. 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 sell 31 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 190.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 5 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 2 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.036 at 18.364. Volume was 8,900% above average (trending) and Bollinger Bands were 0% narrower than normal.
Open High Low Close Volume___
18.404 18.435 18.190 18.364 39,985
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.86 17.75 16.91
Volatility: 18 21 25
Volume: 3,999 800 200
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 8.6% above its 200-period moving average and is in an upward 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 bullish on XAG= and have had this outlook for the last 0 periods.