Silver 1 OZ 999 NY (XAG=X) Price Rallies Into The Weekend

Silver 1 OZ 999 NY (XAG=X) Price Rallies Into The Weekend

Silver 1 OZ 999 NY (XAG=X) Price Rallies Into The Weekend

Silver markets have rallied a bit into the weekend, as the market is dancing around the 50 day EMA yet again. We have recently bounced from an uptrend line, so that of course is a bullish sign as well. Given enough time, the market should then go looking towards the $18.00 level and as long as there is some type of fear out there, it makes sense that perhaps silver could get a bit of a bit, and quite frankly we have been in an uptrend anyway.

Central banks around the world continue to have loose monetary policy and that helps precious metals at the same time, so I don’t have any interest in trying to short either silver or gold. With this being the case, the market also has significant support at that previously mentioned uptrend line and the 200 day EMA which sits just below that trend line and just above the $17.00 level. Ultimately, I believe that this market will continue to show a proclivity to the upside, so I like the idea of buying little bits and pieces along the way. Longer-term, I anticipate that silver is going to go looking towards the $19.00 level again, and then possibly even the $20.00 level over the longer term.

If we were to break down, we would need to clear the 200 day EMA on a daily close in order to think about shorting. At that point, it’s likely that the market probably goes looking towards the $16.00 level after that. Ultimately, this is a market that I believe continues to show a possibility of buying dips until something changes significantly on the risk appetite side and of course the global headlines.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 18.32.

The projected lower bound is: 17.17.

The projected closing price is: 17.75.

Candlesticks

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 31 white candles and 18 black candles for a net of 13 white candles.

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 42.9293. This is not an overbought or oversold reading. The last signal was a buy 22 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 50.35. 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 27 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 20. 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 24 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.103 at 17.730. Volume was -0% below average (neutral) and Bollinger Bands were 32% narrower than normal.

Open     High      Low     Close     Volume___
17.628 17.801 17.600 17.730 0
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 17.65 17.63 16.85
Volatility: 18 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 5.3% 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 12 periods.

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