Silver 1 OZ 999 NY (XAG=X) Markets Quiet on Tuesday

Silver 1 OZ 999 NY (XAG=X) Markets Quiet on Tuesday

Silver 1 OZ 999 NY (XAG=X) Markets Quiet on Tuesday

Silver markets went back and forth during the trading session on Tuesday, as we sit above the $16.50 level, an area that has been crucial for some time. The 200 day EMA sitting just above causes a bit of resistance. If we can break above there, then it’s likely that the market will go to the $17.50 level which also features the 50 day EMA. At this point, the market looks as if it is going to ping around between these three levels but if the market was to break down below the $16.50 level, it could lead to further losses.

The $16.00 level underneath is a level that people will pay attention to, and a breakdown below that level could open up the floodgates. All things being equal though I think that this market simply goes back and forth and there is a certain amount of uncertainty when you look at the overall demand as silver is a precious metal, but furthermore it is an industrial metal, meaning that if there isn’t enough industrial demand, it’s very likely that the market could roll over even though gold will probably take off at the same time.

I do believe that there will be buyers underneath, but on the whole the best way I know to play silver is from a longer-term standpoint, buying physical. However, shorting it when precious metals get crushed is a very quick way to make money in the right circumstances. All things being equal, I do believe that $16.50 will continue to be important.

Technical Indicators

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 17.58.

The projected upper bound is: 17.64.

The projected lower bound is: 16.04.

The projected closing price is: 16.84.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 22 black candles for a net of 5 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 50.6541. This is not an overbought or oversold reading. The last signal was a buy 5 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 38.42. 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 44 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 -73. This is not a topping or bottoming area. The last signal was a buy 4 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 8 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.110 at 16.860. Volume was -0% below average (neutral) and Bollinger Bands were 87% wider than normal.

Open     High      Low     Close     Volume___
16.970 17.190 16.780 16.860 0
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 17.19 17.77 17.10
Volatility: 42 29 27
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 1.4% below its 200-period moving average and is in an downward trend. Volatility is high 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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