Silver 1 OZ 999 NY (XAG=X) prices have explosive upside potential

Silver 1 OZ 999 NY (XAG=X) prices have explosive upside potential

Silver 1 OZ 999 NY (XAG=X) prices have explosive upside potential

Gold and silver prices exploded to new highs this week as global economic woes sent stock markets tumbling. Concerns about interest rates and economic slowdown in China and Germany sent stocks sharply lower during the week, with the S&P 500 losing more than 3% in one day.

Ongoing political unrest in Hong Kong and rising fears of an economic crisis in Argentina compounded the global jitters, which sent many flocking toward precious metals.

By the end of the week, gold and silver were worth $1517 and $17.19 per ounce, respectively.

Technical Indicators

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 15.95.

The projected upper bound is: 17.67.

The projected lower bound is: 16.58.

The projected closing price is: 17.12.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 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 67.1117. This is not an overbought or oversold reading. The last signal was a sell 5 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 65.13. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 77. This is not a topping or bottoming area. The last signal was a sell 0 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 buy 6 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.185 at 17.080. Volume was -0% below average (neutral) and Bollinger Bands were 41% wider than normal.

Open     High      Low     Close     Volume___
17.255 17.329 17.010 17.080 0
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 16.93 15.81 15.25
Volatility: 27 22 18
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 12.0% above its 200-period moving average and is in an upward 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 bullish on XAG= and have had this outlook for the last 52 periods.

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