Silver 1 OZ 999 NY (XAG=X) strong gains have investors attention
Monday’s strong gains in the silver market have focused more trader and investor attention on the metal that many term gold’s little brother. Indeed, safe-haven demand has driven both silver and gold prices solidly higher since early-summer. Today’s burst in silver prices to a two-week high has significantly improved the near-term technical posture for that market. Near-term chart resistance for silver now lies at $19.00 and then at this year’s high of $19.75, basis December Comex futures.
An examination of the longer-term monthly continuation chart for nearby Comex silver futures should have the bulls licking their chops. If silver prices can push above strong longer-term technical resistance at the $20.75 area, then bulls would gain substantially more longer-term technical power, as upside potential really opens up for sizeable gains that would not be measured in cents, but in dollars.
See on the monthly chart dating back over 50 years that once silver prices crack the $20.00 level or just above, major upside potential exists. Even silver prices trading at $25.00 an ounce would be nowhere near the high of $49.82, basis nearby futures, scored in April of 2011. The record high in nearby silver futures prices was scored in January of 1980, at $50.36. However, veteran silver market watchers still debate the actual record high price scored in silver, as when those spike highs were made, the “bid and ask” spreads were likely very wide amid highly volatile trading.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 19.63.
The projected lower bound is: 17.78.
The projected closing price is: 18.71.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 18 black candles for a net of 14 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 78.3343. This is not an overbought or oversold reading. The last signal was a buy 5 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 61.08. 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 12 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 51. This is not a topping or bottoming area. The last signal was a buy 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 10 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.660 at 18.640. Volume was 8,900% above average (trending) and Bollinger Bands were 31% wider than normal.
Open High Low Close Volume___
17.951 18.701 17.920 18.640 42,703
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 17.96 17.30 15.72
Volatility: 37 33 22
Volume: 4,270 854 214
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 18.6% above its 200-period moving average and is in an upward 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 bullish on XAG= and have had this outlook for the last 0 periods.