Silver 1 OZ 999 NY (XAG=X) price tumbles
Silver markets have gotten hammered during the trading session on Tuesday, slicing through the 50 day EMA, breaking below the $17.65 level at the same time. Silver has struggled during the trading session and it now looks as if we are going to go much lower. That being said, there is still plenty of support at the $70.00 level, as the 200 day EMA will be coming into the picture. However, if we were to break down below that level it would be a major problem for silver and could send this market much lower. That being said though, we are still in an uptrend so paying attention to how each daily candlestick closes should be the best way to go going forward. At this point, the market is going to react to the FOMC statement during the trading session tomorrow as well.
Keep in mind that the Federal Reserve has a statement during the trading session on Wednesday, and that could of course cause quite a bit of volatility in the precious metals market as the US dollar has a major effect on what happens here. With that being the case, it’s very likely to be a rough 24 hours, but at this point I think that we are looking very likely to find a lot of interest at the $17.00 level, as it is a large, round, psychologically significant figure, and of course the 200 day EMA will have a certain amount of effect as well. Ultimately, value hunters should continue to be interested at lower levels.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 18.02.
The projected lower bound is: 16.91.
The projected closing price is: 17.47.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 21 black candles for a net of 7 white candles.
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 46.9210. This is not an overbought or oversold reading. The last signal was a buy 9 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 42.56. 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 14 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 -160.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 0 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 11 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.626 at 17.457. Volume was 8,900% above average (trending) and Bollinger Bands were 42% narrower than normal.
Open High Low Close Volume___
18.083 18.113 17.420 17.457 33,468
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.90 17.45 16.66
Volatility: 26 20 24
Volume: 3,347 669 167
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 4.8% above its 200-period moving average and is in an upward 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 27 periods.
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