Silver 1 OZ 999 NY (XAG=X) Slowing Down
The silver market pulled back a bit during the trading session on Tuesday, as the $16.00 level continues to offer massive resistance. I think at this point, we will more than likely pull back towards the uptrend line, possibly even the 50 day EMA underneath. At this point, it’s very likely that the market will continue to find buyers underneath, and that we should continue to find plenty of value hunters jump back in. Beyond that, the next couple of days are going to be crucial.
Not only are we at a technical level that will cause a lot of attention, we also have Jerome Powell speaking in front of Congress for the Humphrey Hawkins testimony for the next couple of days, which will greatly influence what happens with the greenback. If he is very dovish, it’s very likely that the US dollar could lose a certain amount of strength, and that should send Silver to the upside.
If we can make a fresh, new high, the market will very likely go towards the $17.00 level given enough time which is my longer-term target.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 16.26.
The projected lower bound is: 15.48.
The projected closing price is: 15.87.
A black body occurred (because prices closed lower 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 29 white candles and 20 black candles for a net of 9 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 35.6982. This is not an overbought or oversold reading. The last signal was a sell 4 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 54.20. 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 18 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 35. This is not a topping or bottoming area. The last signal was a sell 4 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 0 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.086 at 15.847. Volume was 8,900% above average (trending) and Bollinger Bands were 41% narrower than normal.
Open High Low Close Volume___
15.910 15.938 15.800 15.847 1,884
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.86 15.58 15.19
Volatility: 13 16 19
Volume: 188 38 9
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 4.3% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 2 periods.