Silver 1 OZ 999 NY (XAG=X) show signs of exhaustion

Silver 1 OZ 999 NY (XAG=X) show signs of exhaustion

Silver 1 OZ 999 NY (XAG=X) show signs of exhaustion

Silver markets have recently broken above the downtrend line on the chart that I have drawn, showing a resiliency that the market should continue to go higher. To the upside, the market reached towards the $18.50 level before pulling back a bit. Having said that, the market looks likely to see buying pressure on dips, especially near the $17.50 level and the uptrend line that sits underneath. Ultimately, the market should continue to go looking towards the $18.50 level, and then possibly the $19.00 level. I don’t like shorting silver, at least not until we break down below the 200 day EMA.

Speaking of the 200 day EMA, the market is seen that moving average sitting at the $17.00 level, and as a result it’s likely that support level should holding keep the uptrend intact, however the market should find plenty of buyers underneath to keep this market somewhat alive. Ultimately, the market is going to continue to gain traction due to the fact that central banks around the world are looking very loose with monetary policy, and as a result it’s likely that the silver markets and other precious markets will continue to find plenty of buyers. Quite frankly, there is also a lot of concern when it comes to global growth and disruptions as well, so that’s another reason to think that perhaps precious metals will continue to attract money. However, look for a short-term pullback in order to take advantage of.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 18.94.

The projected lower bound is: 17.79.

The projected closing price is: 18.37.

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 32 white candles and 17 black candles for a net of 15 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 88.8758. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 25 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 62.48. 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 30 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 241.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 4 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 1 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.172 at 18.333. Volume was 8,900% above average (trending) and Bollinger Bands were 15% narrower than normal.

Open     High      Low     Close     Volume___
18.159 18.391 18.120 18.333 37,977
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 17.79 17.72 16.90
Volatility: 18 21 25
Volume: 3,798 760 190

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 8.5% 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 15 periods.

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