Silver 1 OZ 999 NY (XAG=X) Prices Came Close to Downside Target
We have been highlighting since early March about how silver prices may fall towards 14.75. We refined this target later to be 14.40-14.80. Last week, silver prices hit 14.90.
This is close and a rally above 15.64 would build the case the low is in for silver. However, experience dictates that more times than not, a wave that is close to target oftentimes comes back to slice through the target later.
Therefore, the silver price forecast is similar to gold in that we are looking for continued weakness to be temporary into the 14.40-14.80 price zone. We believe silver is in the ‘c’ wave of a zigzag pattern. Once this ‘c’ wave exhausts, we will anticipate a large rally to $17 and possibly $19 that may take many months to complete.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 15.32.
The projected upper bound is: 15.66.
The projected lower bound is: 14.85.
The projected closing price is: 15.26.
A white body occurred (because prices closed higher 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 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 82.1039. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 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 48.89. 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 47 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 6. This is not a topping or bottoming area. The last signal was a buy 4 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 0 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.026 at 15.271. Volume was 8,900% above average (trending) and Bollinger Bands were 36% narrower than normal.
Open High Low Close Volume___
15.230 15.297 15.170 15.271 8,037
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.15 15.50 15.02
Volatility: 15 17 19
Volume: 804 161 40
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 1.7% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 27 periods.