Silver 1 OZ 999 NY (XAG=X) Prices Pop After Recent Fed Statement

Silver 1 OZ 999 NY (XAG=X) Prices Pop After Recent Fed Statement

Silver 1 OZ 999 NY (XAG=X) Prices Pop After Recent Fed Statement

After last week’s outstanding employment figures, investors expected a fairly dull FOMC release yesterday. After all, what more is there to say other than “gee, things seem to be going well, so we’re going to wait for a while before we do anything.”

And that’s what we got.  The FOMC statement said current monetary policy is “appropriate” (strong language there, haha), and don’t expect any interest rate cuts in 2020.

The most probable reason is that investors don’t quite believe the “everything is just fine” tone of the remarks. There is more uncertainty in the world economy than US employment numbers would indicate, as shown by this morning’s very unexpected pop in jobless claims. So investors are probably showing their concern by remembering that gold and silver – traditional stores of value through uncertain times – are low right now, just came off a decent earnings season, and buying strength at low prices is usually a good idea.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 17.42.

The projected lower bound is: 16.35.

The projected closing price is: 16.88.

Candlesticks

A white body occurred (because prices closed higher 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 24 white candles and 26 black candles for a net of 2 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 46.9586. This is not an overbought or oversold reading. The last signal was a buy 1 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 47.03. 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 70 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 28. 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 buy 0 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.044 at 16.897. Volume was 8,900% above average (trending) and Bollinger Bands were 59% narrower than normal.

Open     High      Low     Close     Volume___
16.851 17.120 16.737 16.897 55,587
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 16.84 17.29 16.25
Volatility: 24 20 24
Volume: 5,559 1,112 278

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 4.0% above its 200-period moving average and is in an downward 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 bearish on XAG= and have had this outlook for the last 24 periods.

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