Silver 1 OZ 999 NY (XAG=X) markets continue to find support

Silver 1 OZ 999 NY (XAG=X) markets continue to find support

Silver 1 OZ 999 NY (XAG=X) markets continue to find support

Silver markets fell slightly during the trading session on Monday, as we continue to see a lot of noise around the 50 day EMA which is currently sitting at the $17.46 level.

There is a lot of noise in the area of the $17.50 level from both a structural standpoint and of course because of this moving average. I think currently we are eating ready to find a bit of a range between the $17.00 level underneath and the $18.00 level above. Ultimately, this is a market that has been in and uptrend for quite some time, but we need to pay attention to the fact that there is the possibility of a lot of headline risk going forward.

Looking at the global situation right now, there are a lot of things to worry about, not the least of which of course would be the trade wars. As there are concerns about growth as well, it’s possible that central banks loosening monetary policy could continue to put upward pressure on precious metals in general.

Ultimately, this is a market that features a lot of volatility and it as per usual, and I do think that it’s possible that we get a sudden and impulsive move to tell us which direction we will go. If we were to break down below the $17.00 level, then the 200 day EMA would come into focus which is closer to the $16.20 level underneath. To the upside, if we break above the $18.00 level it’s likely that we will go looking towards the highs again.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 18.43.

The projected lower bound is: 16.44.

The projected closing price is: 17.44.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 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 67.5948. This is not an overbought or oversold reading. The last signal was a buy 3 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 45.69. 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 22 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 -55. This is not a topping or bottoming area. The last signal was a buy 3 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 20 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.134 at 17.416. Volume was 8,900% above average (trending) and Bollinger Bands were 2% narrower than normal.

Open     High      Low     Close     Volume___
17.610 17.625 17.350 17.416 28,350
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 17.61 17.57 15.86
Volatility: 32 35 23
Volume: 2,835 567 142

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 9.8% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 7 periods.

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