Silver 1 OZ 999 NY (XAG=X) Markets Bounce Again
Silver markets have initially fallen during the trading session on Monday, as it was more of a “risk on” type of situation after it was initially suggested that the phone call between the Americans and the Chinese were “constructive” over the weekend. However, we have sense seen conflicting reports, so therefore it makes sense that the market has turned right back around to buy silver and gold in order to protect itself. At this point, it’s very likely that the market will continue to see choppiness as there are a lot of moving pieces at the same time.
The 200 day EMA sits underneath and should offer a bit of support. It is flattening out though, as opposed to rising as it had been. This could be the beginning of more sideways action, but I would point out that the last couple of candlesticks have been somewhat supportive. Currently, the 50 day EMA is starting to turn lower, and squeezing towards the 200 day EMA. If that’s going to continue to be the case, it’s likely that we will see a lot of back and forth choppy trading in this general vicinity. Ultimately, we will need some type of clarity coming out of risk appetite in general before we can figure out where to go next.
One thing that should be noted is that we have broken through a major uptrend line, but now have found support exactly where you would need to see it. With this in mind, this is a market that will probably continue to be a lot of back and forth and choppy behavior. That being said, if we can break above the 50 day EMA it could open up the move to much higher levels. Otherwise, if we break down below the 200 day EMA that could drop this market down significantly.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 17.27.
The projected upper bound is: 17.80.
The projected lower bound is: 16.26.
The projected closing price is: 17.03.
A white body occurred (because prices closed higher 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 24 white candles and 26 black candles for a net of 2 black 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 78.6382. This is not an overbought or oversold reading. The last signal was a buy 4 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 41.80. 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 53 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 -37. This is not a topping or bottoming area. The last signal was a buy 4 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 9 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.033 at 17.050. Volume was 8,900% above average (trending) and Bollinger Bands were 9% wider than normal.
Open High Low Close Volume___
17.021 17.050 17.000 17.050 308
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.01 17.59 16.14
Volatility: 22 28 24
Volume: 31 6 2
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 5.6% above its 200-period moving average and is in an downward 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 into XAG= (bullish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 7 periods.
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