Silver 1 OZ 999 NY (XAG=X) Markets Slam Into Downtrend Line
Silver markets rallied a bit during the trading session on Thursday, reaching towards the downtrend line in what could either be a down trending channel or the top of the descending triangle. Because of this, the downtrend line becomes very crucial.
Silver markets rallied a bit during the trading session on Thursday, but still has to deal with the downtrend line that’s just above. By doing so, it is arguing with the possibility of whether or not this descending triangle is going to stay in effect, or are we going to break out to the upside and go screaming towards the $18.00, and then perhaps even $18.75 after that.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 18.52.
The projected lower bound is: 16.60.
The projected closing price is: 17.56.
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 spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 54.8381. 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 48.62. 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 31 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 34. This is not a topping or bottoming area. The last signal was a buy 12 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 3 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.030 at 17.550. Volume was 8,900% above average (trending) and Bollinger Bands were 12% narrower than normal.
Open High Low Close Volume___
17.542 17.570 17.530 17.550 214
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.53 17.75 15.95
Volatility: 17 34 23
Volume: 21 4 1
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 10.1% above 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 16 periods.