Silver 1 OZ 999 NY (XAG=X) Markets Rally Significantly

Silver 1 OZ 999 NY (XAG=X) Markets Rally Significantly

Silver 1 OZ 999 NY (XAG=X) Markets Rally Significantly

Silver markets got hammered during the week, reaching to extraordinarily low levels, breaking the back of a couple of hammers from previous weeks. However, we have seen a complete turnaround as traders continue to worry about the coronavirus. At this point, the market is likely to continue to see buyers underneath, so on pullbacks it’s very likely that silver will attract a lot of attention to it. The $18 level looks to be important, and therefore it makes quite a bit of sense that we see markets react again and again as they have recently. The massive candlestick that we have formed for the week is very impressive, and that tells me that there are more than enough buyers underneath to lift this market. This will be especially true if global markets continue to be concerned about the coronavirus.

Because of this major “risk off” market that we are in right now, it makes sense that precious metals in general will continue to have quite a bit of attention attached to them, and while gold is the first place that people typically go to, it’s obvious that silver is going to try to make a move towards the $19.00 level above. That is an area that has been resistance previously, so it makes sense that we continue to see that area attract a lot of attention as well. Right now, that’s my target but I also recognize that you may get an opportunity to pick up a bit of a pullback in order to pick up value and should look at pullbacks as value in this market. The explosive candlestick of course shows signs of increased volatility, thereby showing signs of increased interest.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 18.63.

The projected lower bound is: 17.47.

The projected closing price is: 18.05.

Candlesticks

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 30 white candles and 19 black candles for a net of 11 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 45.8440. This is not an overbought or oversold reading. The last signal was a buy 12 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 55.34. 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 17 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 47. This is not a topping or bottoming area. The last signal was a buy 1 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 14 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.206 at 18.031. Volume was -0% below average (neutral) and Bollinger Bands were 33% narrower than normal.

Open     High      Low     Close     Volume___
17.824 18.083 17.760 18.031 0
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 17.84 17.49 16.71
Volatility: 29 21 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 7.9% above its 200-period moving average and is in an downward 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 bearish on XAG= and have had this outlook for the last 2 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.