Silver 1 OZ 999 NY (XAG=X) Markets Gapped Lower
Silver markets gapped lower to kick off the week, but then turned around to fill the gap going forward. At this point, the market is likely to also pay attention to the $18.00 level which of course is a psychological barrier, and then beyond that you have the previous uptrend line that the market has failed at. Because of this, I believe that the silver market is in the process of making a rather important decision. Quite frankly, if we can break above the uptrend line on a daily close, then it would be a very bullish sign for silver.
On the other hand, it if the market breaks down below the $17.85 level, then it’s possible that the market will go looking towards the 50 day EMA which is closer to the $17.30 level. At that point, there would probably be buyers, and that of course down below at the 200 day EMA which is currently at the $16.68 level. We are essentially “trapped” between these major technical levels, so I think we will continue to consolidate in this general vicinity, especially considering that the end of the year is now upon us, and the volume of course won’t necessarily be strong. With this, we need to see volumes pick up to make a longer-term decision but in the short term we may be able to play a bit of ping-pong between these levels, but overall, it’s very likely that the short-term traders will love this market. With this, be quick to go in and out of positions.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 18.38.
The projected lower bound is: 17.29.
The projected closing price is: 17.84.
During the past 10 bars, there have been 7 white candles and 2 black candles for a net of 5 white candles. During the past 50 bars, there have been 28 white candles and 21 black candles for a net of 7 white candles.
A gravestone doji occurred. This often signifies a top (the longer the upper shadow, the more bearish the signal).
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 64.9589. This is not an overbought or oversold reading. The last signal was a sell 1 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 65.20. 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 79. This is not a topping or bottoming area. The last signal was a sell 0 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 buy 13 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed unchanged at 17.830. Volume was 8,900% above average (trending) and Bollinger Bands were 18% wider than normal.
Open High Low Close Volume___
17.830 17.840 17.830 17.830 8
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.57 17.26 16.39
Volatility: 15 20 24
Volume: 1 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.
PREC.M.XAG= is currently 8.8% 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 8 periods.