Silver 1 OZ 999 NY (XAG=X) Sell Off Amid Keener Risk Appetite
Gold and silver prices are lower and headed toward technically bearish weekly low closes in early U.S. trading Friday. Trader and investors are exhibiting very little risk aversion in the marketplace to end the trading week, and that’s negative for the safe-haven metals. February gold futures were last down $10.80 an ounce at $1,281.00. March Comex silver was down $0.096 at $15.44 an ounce.
European and Asian stock markets were mostly higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. Traders and investors are in upbeat moods late this week on reports that surfaced Thursday afternoon the U.S. is considering lowering or even eliminating its trade tariffs on China as a way to get that nation to make more trade concessions in the current trade war. The idea came from U.S. Treasury Secretary Steven Mnuchin, reports said. However, other reports said U.S. Trade Representative Robert Lighthizer is against the idea, while another report said the Trump administration is not considering lowering tariffs on Chinese goods imported into the U.S. Next week, Chinese and U.S. trade officials are scheduled to meet next week in Washington. The marketplace is taking this news as a positive and reckons President Trump is demanding his advisors get a trade deal done with China by early March.
March silver futures bulls are fading as prices hit a two-week low overnight. 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 $15.00. First resistance is seen at the overnight high of $15.605 and then at this week’s high of $15.735. Next support is seen at $15.385 and then at $15.25.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 15.13.
The projected upper bound is: 15.73.
The projected lower bound is: 14.94.
The projected closing price is: 15.34.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 25.4013. This is not an overbought or oversold reading. The last signal was a sell 9 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 51.75. 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 6 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 -174.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 9 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 4 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.200 at 15.320. Volume was -0% below average (neutral) and Bollinger Bands were 44% wider than normal.
Open High Low Close Volume___
15.500 15.578 15.290 15.320 0
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.59 14.82 15.30
Volatility: 11 17 20
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 0.1% above its 200-period moving average and is in an upward 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 bullish on XAG= and have had this outlook for the last 29 periods.
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