Silver 1 OZ 999 NY (XAG=X) struggles. with technical resistance
A soft start for silver this week as the three-month downtrend remains dominant and currently caps any upside moves. Silver remains under all three moving averages and below the 23.6% Fibonacci retracement level at $14,92. To initiate a turn higher, silver will need to break the pattern of lower highs and lower lows.
To start this, silver will need to hold above the six-month recently made at $14,38 and close above $14,65 and $14,87. Support at $14,38 remains key in the short-term to protect the spike low at $14,05 and the full retrace back to the November 14 low at $13,90.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 14.94.
The projected upper bound is: 14.67.
The projected lower bound is: 13.98.
The projected closing price is: 14.33.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 22 black candles for a net of 4 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 57.5653. This is not an overbought or oversold reading. The last signal was a buy 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 33.87. 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 6 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 -95. This is not a topping or bottoming area. The last signal was a buy 3 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 -0.244 at 14.346. Volume was -0% below average (neutral) and Bollinger Bands were 7% narrower than normal.
Open High Low Close Volume___
14.570 14.600 14.250 14.346 0
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 14.52 14.93 14.90
Volatility: 16 15 18
Volume: 0 0 0
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 3.7% below its 200-period moving average and is in an downward 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 into XAG= (bullish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 62 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.