Silver 1 OZ 999 NY (XAG=X) showing signs of life again
Silver had a good day on Tuesday, even though it fell. This is because not only did we pull back, but we also managed to find support. By doing so, at roughly the $15.50 level, it looks as if there is still a significant amount of tenacity to the bullish pressure, and that of course is going to be a good sign for traders overall.
The $16 level above was the initial target, which makes sense considering that we had previously been in a $1.00 consolidation area and extrapolating that higher as a projected move had us looking at that level. Ultimately, I do think that this market will probably continue to see buyers on dips, as silver has formed a huge rounded bottom, and quite frankly the US dollar will probably continue to struggle a bit due to the softening stance of the Federal Reserve. I believe ultimately we are looking at a scenario where we will eventually break above the $16 level and perhaps go looking towards the $17 level above, which is the top of the longer-term consolidation area, with the $14 level underneath being the massive support from the longer-term. I do believe that silver will continue to grind higher, but I also recognise it will be volatile so small position sizing is crucial.
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 15.04.
The projected upper bound is: 16.14.
The projected lower bound is: 15.24.
The projected closing price is: 15.69.
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 26 white candles and 24 black candles for a net of 2 white candles.
A hammer occurred (a hammer has a long lower shadow and closes near the high). Hammers must appear after a significant decline or when prices are oversold to be valid. When this occurs, it usually indicates the formation of a support level and is thus considered a bullish pattern.
A hanging man occurred (a hanging man has a very long lower shadow and a small real body). This pattern can be bullish or bearish, depending on the trend. If it occurs during an uptrend (which appears to be the case with PREC.M.XAG=) it is called a hanging man line and signifies a reversal top. If it occurs during a downtrend it is called a bullish hammer.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 64.4225. 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 72.17. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 88 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 71. This is not a topping or bottoming area. The last signal was a sell 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 buy 25 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.023 at 15.666. Volume was 8,900% above average (trending) and Bollinger Bands were 116% wider than normal.
Open High Low Close Volume___
15.644 15.685 15.460 15.666 10,250
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.48 14.65 15.33
Volatility: 14 20 20
Volume: 1,025 205 51
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 2.2% 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 21 periods. Our momentum oscillator is currently indicating that XAG= is currently in an overbought condition.