Silver 1 OZ 999 NY (XAG=X) struggling at the down trending line of the falling wedge

Silver 1 OZ 999 NY (XAG=X) struggling at the down trending line of the falling wedge

Silver 1 OZ 999 NY (XAG=X) struggling at the down trending line of the falling wedge

Silver markets tried to rally but then gave back the gains during the trading session on Wednesday, showing signs of resistance at the $15.00 level yet again.

This is a market that continues to be tight and negative overall, but we have also formed a bit of a falling wedge, and if that falling wedge gets broken to the upside, it’s very likely that we could start to take off to the upside. Obviously, this has a lot to do with the US dollar, so if the US dollar strengthens that could weigh upon the silver market.

If we break down below the $14.83 level, we could drift down towards the bottom of the candle stick from the Friday session. If we break down below there, the market is likely to unwind quite drastically. However, if we break to the upside and close on the daily chart above the $15.00 level, we could continue to reach towards much higher levels. Based upon the falling wedge, in theory we should go to the $60.00 level, but obviously that would take quite some time to get done.

Looking at the volatility, I think you can continue to trade in small positions only, because of the massive amount of volatility. In general, this is a marketplace that is highly volatile under most circumstances, and of course with all of the crucial amount of headlines coming out involving the US/China trade relations, it’s very likely we continue to see a lot of “risk on/risk off” trading. In other words, pay attention to your levels and trade small.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 15.20.

The projected lower bound is: 14.40.

The projected closing price is: 14.80.

Candlesticks

During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 27 white candles and 21 black candles for a net of 6 white candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 72.6590. This is not an overbought or oversold reading. The last signal was a buy 28 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 43.35. 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 69 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 -40. This is not a topping or bottoming area. The last signal was a buy 4 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 buy 3 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.015 at 14.820. Volume was 8,900% above average (trending) and Bollinger Bands were 53% narrower than normal.

Open High Low Close Volume___
14.820 14.843 14.810 14.820 235

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

Moving Averages: 10-period 50-period 200-period
Close: 14.86 15.10 14.93
Volatility: 18 17 19
Volume: 24 5 1

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 0.8% 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 49 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH