Silver 1 OZ 999 NY (XAG=X) prices weaker as U.S. stock indexes near record highs
Gold and silver prices are modestly lower in early U.S. trading Friday. The safe-haven metals are pressured in part by the U.S. stock indexes trading very close to their yearly and all-time highs—suggesting little risk aversion in the U.S. marketplace. December gold futures were last down $5.30 an ounce at 1,493.00. December Comex silver prices were last down $0.092 at $17.52 an ounce.
Asian and European stock markets were mostly down overnight, led by sharp losses in China stock indexes. The U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.
World equity markets were pressured on news that China’s gross domestic product in the third quarter grew by 6.0% on an annual basis, which is the slowest pace in at least 27 years. The GDP 3Q figure was forecast at up 6.1%. On the positive side, China’s industrial production in September was reported up 5.8%, year-on-year, versus expectations for a rise of 4.9%. This news could be deemed bearish for the gold market, given that China is the world’s leading consumer of gold, along with India.
December silver futures bulls have the slight overall near-term technical advantage but have faded recently and need to negate a five-week-old downtrend line in place on the daily bar chart to gain fresh power. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce.
The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.94. First resistance is seen at this week’s high of $17.765 and then at $18.00. Next support is seen at Thursday’s low of $17.33 and then at this week’s low of $17.18.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 18.51.
The projected lower bound is: 16.60.
The projected closing price is: 17.55.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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 54.3944. This is not an overbought or oversold reading. The last signal was a buy 12 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 48.45. 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 31 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 4. This is not a topping or bottoming area. The last signal was a buy 12 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 3 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.021 at 17.541. Volume was -0% below average (neutral) and Bollinger Bands were 12% narrower than normal.
Open High Low Close Volume___
17.542 17.597 17.370 17.541 0
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.53 17.75 15.95
Volatility: 17 34 23
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.
PREC.M.XAG= is currently 10.0% above its 200-period moving average and is in an downward 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 bearish on XAG= and have had this outlook for the last 16 periods.