SILVER 1 OZ 999 NY (XAG=X) some downside pressure

SILVER 1 OZ 999 NY (XAG=X) some downside pressure

SILVER 1 OZ 999 NY (XAG=X) some downside pressure

Gold and silver prices are moderately lower in early-afternoon U.S. trading Tuesday. A modest rebound in the U.S. dollar index today, as well as a rally in the U.S. stock market, put some downside pressure on the precious metals markets. Trading was choppy and two-sided as the world marketplace awaits the outcome of the U.S. mid-term elections. December gold futures were last down $5.10 an ounce at $1,227.20. December Comex silver was last down $0.107 at $14.54 an ounce.

December silver futures bears have the overall near-term technical advantage. However, recent price action suggests a market bottom is in place. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the September low of $13.965. First resistance is seen at $14.95 and then at $15.00. Next support is seen at last week’s low of $14.24 and then at $14.00.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 14.96.

The projected lower bound is: 14.06.

The projected closing price is: 14.51.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 18 white candles and 31 black candles for a net of 13 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 58.2501. This is not an overbought or oversold reading. The last signal was a buy 3 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 49.02. 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 buy 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 -24. 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 6 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.118 at 14.512. Volume was 8,900% above average (trending) and Bollinger Bands were 42% narrower than normal.

Open High Low Close Volume___
14.643 14.713 14.440 14.512 10,608

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 14.56 14.42 15.75
Volatility: 25 20 20
Volume: 1,061 212 53

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 7.9% below 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 28 periods.

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