Silver 1 OZ 999 NY (XAG=X) pressured by upbeat trader and investor attitudes
Gold and silver prices are modestly lower in early-afternoon U.S. trading Tuesday. The safe-haven metals are being pressured by upbeat trader and investor attitudes early this week. Still, the bulls can argue the price weakness in both metals is just a normal corrective pullback following recent gains that pushed gold to a six-month high and silver to a five-month high late last week. February gold futures were last down $2.40 an ounce at $1,287.50. March Comex silver was down $0.046 at $15.71 an ounce.
World stock markets are being boosted this week on perceived progress on U.S.-China trade talks presently taking place in Beijing and ideas of a more dovish Federal Reserve monetary policy in 2019.
The U.S. government shutdown is into its third week, but the matter is garnering less attention from the marketplace and is not a front-burner issue. President Trump will address U.S. citizens in a speech on a U.S. southern border wall Tuesday evening.
March silver futures prices closed nearer the session high and saw a mild corrective pullback after hitting a five-month high last Friday. The silver bulls have the overall near-term technical advantage. A seven-week-old price uptrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.25. First resistance is seen at this week’s high of $15.88 and then at last week’s high of $15.955. Next support is seen at today’s low of $15.56 and then at $15.385.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 15.06.
The projected upper bound is: 16.10.
The projected lower bound is: 15.20.
The projected closing price is: 15.65.
A black body occurred (because prices closed lower 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 25 white candles and 25 black 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 56.2619. This is not an overbought or oversold reading. The last signal was a sell 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 70.77. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 89 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 72. This is not a topping or bottoming area. The last signal was a sell 2 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 26 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.022 at 15.630. Volume was 8,900% above average (trending) and Bollinger Bands were 113% wider than normal.
Open High Low Close Volume___
15.651 15.775 15.540 15.630 9,784
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.53 14.68 15.33
Volatility: 12 20 19
Volume: 978 196 49
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 2.0% 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 into XAG= (bullish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 22 periods. Our momentum oscillator is currently indicating that XAG= is currently in an overbought condition.