Silver 1 OZ 999 NY (XAG=X) Market Continues To Kill Time

Silver 1 OZ 999 NY (XAG=X) Market Continues To Kill Time

Silver 1 OZ 999 NY (XAG=X) Market Continues To Kill Time

Silver markets have rallied a bit during the trading session on Friday, breaking higher but then giving back a bit of the gains once we get above the $18.00 level. The $18.00 level seems to be an area that is very attracted to the market in general, so having said that I believe it’s only a matter of time before we have to make some type of decision. The 50 day EMA is just below so that should continue to attract a lot of attention in the manner of support. To the upside, I believe that the $19.00 level will probably be a bit of a resistance barrier as well, considering that is where the market had pulled back from the shooting star that formed last week. Nonetheless, there are so many moving pictures and pieces out there that it’s possible that silver gets a boost from either things we know, or some new problem with the global markets.

The Federal Reserve is likely to have a very loose monetary policy, and that probably extends quite a bit into the future so I do like silver longer term, but I recognize that the volatility will continue to be an issue. With this, I like the idea of buying dips, and I think that the 50 day EMA is just as good of a place to do so as anywhere else on this chart. I would not get overly involved in the market right away, rather I would build up a position to take advantage of what I think is sustained momentum longer-term.

Technical Indicators

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 17.56.

The projected upper bound is: 18.50.

The projected lower bound is: 17.53.

The projected closing price is: 18.02.

Candlesticks

A white body occurred (because prices closed higher 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 29 white candles and 20 black candles for a net of 9 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 63.5098. This is not an overbought or oversold reading. The last signal was a buy 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 57.32. 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 7 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 -2. This is not a topping or bottoming area. The last signal was a sell 6 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 4 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.058 at 17.998. Volume was -0% below average (neutral) and Bollinger Bands were 30% narrower than normal.

Open     High      Low     Close     Volume___
17.941 18.161 17.870 17.998 0
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 18.03 17.32 16.56
Volatility: 19 18 24
Volume: 0 0 0

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 8.7% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 20 periods.

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