Silver 1 OZ 999 NY (XAG=X) safe-haven demand for the has waned
Gold and silver prices are lower in early U.S. trading Wednesday. Safe-haven demand for the metals has waned a bit at mid-week as risk aversion has subsided just a bit. Traders and investors are now focused on today’s FOMC decision. December gold futures were last down $4.10 an ounce at 1,509.30. December Comex silver prices were last down $0.215 at $17.925 an ounce.
The big U.S. economic event this week is the meeting of the Federal Reserve’s Open Market Committee (FOMC) that began Tuesday morning and ends Wednesday afternoon with a statement. It’s widely believed the FOMC will lower U.S. interest rates by 0.25% today. Traders also hope they will get some forward guidance on U.S. monetary policy from Fed Chairman Powell’s press conference today. President Trump has been berating the Fed to more aggressively lower interest rates to make the U.S. more competitive with other nations on trade.
December silver futures bulls still have the overall near-term technical advantage. A three-month-old uptrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $18.555 an ounce.
The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at this week’s high of $18.17 and then at $18.265. Next support is seen at this week’s low of $17.69 and then at last week’s low of $17.47.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 18.60.
The projected lower bound is: 16.80.
The projected closing price is: 17.70.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 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 44.0505. This is not an overbought or oversold reading. The last signal was a buy 2 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 48.76. 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 9 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 -90. This is not a topping or bottoming area. The last signal was a buy 1 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 7 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.361 at 17.654. Volume was 8,900% above average (trending) and Bollinger Bands were 60% wider than normal.
Open High Low Close Volume___
18.010 18.038 17.500 17.654 39,837
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.99 17.13 15.67
Volatility: 41 32 22
Volume: 3,984 797 199
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 12.7% 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 75 periods.
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