Silver 1 OZ 999 NY (XAG=X) Markets Shoot Straight Up In The Air As Federal Reserve Goes All In
Silver markets rallied significantly during the trading session on Tuesday, breaking above the psychologically important $14 level. That being said, the market is likely to see some type of pullback in the short term. Given enough time, it’s likely that the market then will find buyers again. This type of move is quite often the first move that signifies a trend change. Pullbacks at this point are likely, due to the fact that it is countertrend, but the real question is whether or not the next move lower is a “higher low” than the previous one. If that’s going to be the case, it’s very likely that we will in fact see a significant trend change.
Silver is an interesting precious metal because it does act as a precious metal, but at the same time it also has a major industrial component built-in. If that’s the case, traders are betting on the precious metal side due to the fact that one would have to think industry doesn’t have much of a chance. The $15.00 level above should be significant resistance, so I think it will be difficult to get above. I would be very surprised if we get above there without some type of significant effort. Because of this, I do think that a pullback is more likely than not. To the downside, the $12.00 level should be a significant support barrier. If we were to break below there, that would obviously be an extraordinarily negative sign.
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 15.68.
The projected upper bound is: 15.60.
The projected lower bound is: 12.85.
The projected closing price is: 14.23.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.
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).
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 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 93.4378. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 2 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 40.95. 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 buy 1 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 -4. This is not a topping or bottoming area. The last signal was a buy 3 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 19 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.030 at 14.300. Volume was 8,900% above average (trending) and Bollinger Bands were 339% wider than normal.
Open High Low Close Volume___
14.280 14.700 14.210 14.300 4,443
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 13.45 16.84 17.05
Volatility: 114 59 37
Volume: 444 89 22
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 16.1% below 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 18 periods.