Silver 1 OZ 999 NY (XAG=X) looks as if the market is ready to go towards the $16
Silver markets went back and forth during the trading session on Tuesday, as we continue to hover around the $15.85 level. The 20 day EMA has offered support during the previous session, forming a hammer. Ultimately, it looks as if the market is ready to go towards the $16 level, an area that of course will attract a lot of attention due to the large round figure. Beyond that, I do believe that the market will probably go looking towards the $17 level eventually as the larger consolidation area dictates.
The Federal Reserve stepping away from its hawkish stance of course is bad for the greenback, which should send Silver higher longer term. Overall, we have been in a nice uptrend, so I think it’s only a matter time before we show signs of buying again. I do like silver from a low leverage standpoint, perhaps even physical silver as I think it is only a matter time before we gain significant strength.
The 20 day EMA, pictured in green, and the 200 day EMA pictured in black both offer significant support. Pullbacks should continue to be buying opportunities, and I think that the first sign of a bounce is reason enough to go long. However, I would build up my position rather small to start with, and then add as we make a fresh, new highs. Overall, this is a market that I think will move according to what’s going on with the greenback.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 15.34.
The projected upper bound is: 16.16.
The projected lower bound is: 15.37.
The projected closing price is: 15.76.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 30.0312. This is not an overbought or oversold reading. The last signal was a sell 2 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 56.29. 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 3 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 32. This is not a topping or bottoming area. The last signal was a sell 2 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 0 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.110 at 15.730. Volume was 8,900% above average (trending) and Bollinger Bands were 14% wider than normal.
Open High Low Close Volume___
15.846 15.865 15.720 15.730 2,169
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.81 15.19 15.24
Volatility: 20 17 19
Volume: 217 43 11
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 3.2% 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 42 periods.