Silver 1 OZ 999 NY (XAG=X) prices pushing to six-month highs
Gold and silver prices are modestly up and in early U.S. trading Wednesday. Gold notched an eight-month high overnight, while silver prices pushed to six-month highs. Several factors are presently at work supporting the precious metals market bulls. February gold futures were last up $2.10 an ounce at $1,311.00. March Comex silver was last up $0.066 at $15.905 an ounce.
The just-released U.S. ADP national employment report came in at up 213,000 in January. That was well above the average trade guess of up 183,000. Gold and silver prices did retreat just a bit following the release of the report. The ADP report is a precursor to Friday morning’s more important Employment Situation Report issued by the Labor Department.
European and Asian stock markets were again narrowly mixed overnight, ahead of key news events to play out this week. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. A negative earnings report from Apple, released late Tuesday, has U.S. investors in a tentative mood today. This week’s wobbly U.S. stock market is prompting some safe-haven demand in the gold and silver markets.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 16.49.
The projected lower bound is: 15.68.
The projected closing price is: 16.09.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 22 black candles for a net of 6 white 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 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 91.3771. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 71.15. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. 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 180.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. 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 0.210 at 16.051. Volume was 8,900% above average (trending) and Bollinger Bands were 4% narrower than normal.
Open High Low Close Volume___
15.841 16.102 15.800 16.051 11,915
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.54 15.04 15.25
Volatility: 21 17 19
Volume: 1,192 238 60
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 5.3% above its 200-period moving average and is in an upward trend. Volatility is 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 37 periods. Our momentum oscillator is currently indicating that XAG= is currently in an overbought condition.