Silver 1 OZ 999 NY (XAG=X) showing signs of life again

Silver 1 OZ 999 NY (XAG=X) showing signs of life again

Silver 1 OZ 999 NY (XAG=X) showing signs of life again

Silver markets initially break down below the uptrend line during the trading session on Wednesday, but then turned around to form a relatively supportive looking candle. If that’s going to be the case, then it looks as if the uptrend may have just saved itself.

Silver markets have broken below the uptrend line underneath, turning around to show signs of life again. The 50 day EMA is just above, and that could cause a bit of a short-term barrier. If we can break above the 50 day EMA, then the market is likely to go towards the $18.15 level. Ultimately, the market is likely to go higher, simply as the trend is still somewhat intact, but it is most certainly pressing it’s locked.

If the market were to break down below the $17.00 level, then it would be a very negative turn of events obviously and could threaten the overall trend. At this point, the market is likely to continue to go higher but it’s going to be very choppy.

With the central banks out there looking to cut interest rates and loose monetary policy for the foreseeable future, it should continue to press the precious metals markets higher. All things being equal, the market is very likely to continue to try to grind higher, but the keyword here is probably going to be “grind.” Overall, this is a market that continues to find plenty of buyers from the longer-term standpoint, so a breakdown below the $17.00 level could open the floodgates to more selling. 

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 17.43.

The projected upper bound is: 18.53.

The projected lower bound is: 16.67.

The projected closing price is: 17.60.

Candlesticks

A white body occurred (because prices closed higher 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 24 white candles and 26 black candles for a net of 2 black candles.

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 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 36.7189. This is not an overbought or oversold reading. 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 46.96. 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 44 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 -86. This is not a topping or bottoming area. The last signal was a sell 1 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 sell 0 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.031 at 17.616. Volume was 8,900% above average (trending) and Bollinger Bands were 45% narrower than normal.

Open     High      Low     Close     Volume___
17.580 17.649 17.350 17.616 44,685
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 17.88 17.87 16.09
Volatility: 22 32 23
Volume: 4,469 894 223

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 9.5% 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 7 periods.

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