Silver 1 OZ 999 NY (XAG=X) looks as if the US dollar boost will work against silver

Silver 1 OZ 999 NY (XAG=X) looks as if the US dollar boost will work against silver

Silver 1 OZ 999 NY (XAG=X) looks as if the US dollar boost will work against silver

Silver markets fell a bit during the trading session on Thursday, reaching down towards the $15.00 level during the day as the US dollar picked up strength, and the Euro of course fell. There is a major stabilizing factor at the 1.12 level in the EUR/USD pair, so the pair bounced a bit, and that relieved some of the pressure on silver as the dollar gave back strength. At the same time, the silver market was sitting just above the $15.00 level, which of course is a major figure, and an area where we had seen massive resistance previously.

We are just now pulling back to that previous resistance to prove it to be supportive, so it makes sense that we could get a little bit of relief. Overall, it’s very likely that silver will rally though, and as long as we can stay above the $14.90 level, it’s very likely that silver will continue to go higher. However, if we drop down below that level, it probably will reach down towards the $14.50 level eventually. In general, I do think that silver will hold its value, but obviously we have some volatility ahead of us with the jobs number coming out on Friday. That being the case, I would start out slow and add once the market works out in your favour.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 15.42.

The projected lower bound is: 14.60.

The projected closing price is: 15.01.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 white candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 9.8419. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 10 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 32.26. 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 24 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 -113.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 10 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 6 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.056 at 15.015. Volume was 8,900% above average (trending) and Bollinger Bands were 43% wider than normal.

Open High Low Close Volume___
15.066 15.115 14.960 15.015 12,131

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 15.46 15.62 15.15
Volatility: 17 17 19
Volume: 1,213 243 61

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.

Summary

PREC.M.XAG= is currently 0.9% below its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect very strong flows of volume out of XAG= (bearish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 4 periods.

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