Silver 1 OZ 999 NY (XAG=X) should continue to be very supported

Silver 1 OZ 999 NY (XAG=X) should continue to be very supported

Silver 1 OZ 999 NY (XAG=X) should continue to be very supported

Silver markets initially fell during the trading session on Monday, but then turned around to reach towards the $16.50 level. That’s an area that of course attracts a lot of attention, as it is a large, round, psychologically important figure.

Ultimately, this is a market that should continue to be very supported, and I do think that it’s only a matter of time before we see a lot of bullish pressure, as we see a lot of central bank intervention to loosen monetary policy, which of course drives up demand for precious metals in general. I believe at this point, both silver and gold will continue to find plenty of buyers.

Technical Indicators

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 15.74.

The projected upper bound is: 17.63.

The projected lower bound is: 16.57.

The projected closing price is: 17.10.

Candlesticks

A white body occurred (because prices closed higher 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 33 white candles and 17 black candles for a net of 16 white candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 75.2489. This is not an overbought or oversold reading. The last signal was a sell 1 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 69.66. 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 2 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 127.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 12 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.117 at 17.057. Volume was 8,900% above average (trending) and Bollinger Bands were 49% wider than normal.

Open     High      Low     Close     Volume___
16.948 17.155 16.780 17.057 14,807
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 16.62 15.63 15.20
Volatility: 28 21 18
Volume: 1,481 296 74

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.

Summary

PREC.M.XAG= is currently 12.2% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 48 periods.

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