Silver 1 OZ 999 NY (XAG=X) Profit Taking
Gold and silver prices are lower in early U.S. trading Tuesday, on normal downside corrections following recent gains that pushed prices to multi-week highs recently. Some profit-taking from the shorter-term futures traders is also featured today. April gold futures were last down $9.60 an ounce at $1,313.00. May Comex silver was last down $0.132 at $15.44 an ounce.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Trader and investor risk appetite has up-ticked a bit today, which is also a negative for the safe-haven metals. Trading is more subdued early this week, amid a lack of major news to move markets and ahead of key events later this week that include high-level trade talks between the U.S. and China, and gross domestic product data coming from several countries.
A feature in the marketplace recently has been falling government bond yields in the major industrialized countries. U.S. Treasury yields briefly inverted late last week when the short-term 3-month note yield moved above the 10-year note yield. In Germany, government bond yields are now just into negative territory. Worries about economic growth in the major countries, combined with very low inflation, are prompting the falling bond yields (rising prices).
May silver futures bulls have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the March low of $14.985. First resistance is seen at the overnight high of $15.56 and then at last week’s high of $15.65. Next support is seen at last Friday’s low of $15.365 and then at last week’s low of $15.22.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 15.37.
The projected upper bound is: 15.86.
The projected lower bound is: 15.00.
The projected closing price is: 15.43.
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 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 59.3100. This is not an overbought or oversold reading. The last signal was a sell 8 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 49.30. 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 37 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 70. This is not a topping or bottoming area. The last signal was a sell 0 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 7 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.103 at 15.432. Volume was 8,900% above average (trending) and Bollinger Bands were 24% narrower than normal.
Open High Low Close Volume___
15.530 15.554 15.370 15.432 13,509
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.40 15.57 15.07
Volatility: 15 18 19
Volume: 1,351 270 68
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 2.4% 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 17 periods.