Silver 1 OZ 999 NY (XAG=X) Target $16
Based on last week, silver is about to make an explosive move.
With the market closing below the 9-day moving average, which is VC PMI’s first filter, it tells us that we are coming into the week with a bearish trend momentum.
The VC PMI’s weekly average price (the second filter) is $14.89, so the artificial intelligence is telling us that the market is bullish coming into next week.
First Filter: Bearish
Silver closed at $14.98 last week. With the market closing below the 9-day moving average, which is the first filter we use for the VC PMI automated algorithm, it tells us that we are coming into the week with a bearish trend momentum. The algorithm also tells us that if the price closes above $15.21 next week, it would negate this bearishness to neutral. For the bear camp, this is a pivot point or filter, which would negate this bearish trend that we have been in for the past few weeks.
Second Filter: Bullish
As we look at the VC PMI’s weekly average price (the second filter) of $14.89, the artificial intelligence is telling us that the market is bullish coming into next week. Closing above $14.89 activates a bullish weekly price momentum and activates the targets above of $15.21 and $15.24. The weekly price momentum indicator is the second filter, which you can use to manage the trend momentum.
The VC PMI also tells you that if silver closes below $14.89, it would negate this bullish trend momentum to neutral. The fact that the weekly price momentum is coming into next week bullish means that the market has activated the targets of $15.21 to $15.24, at which point it recommends to cover any positions you have on a swing basis and go neutral, and then wait to see what the market does.
Harmony: First and Second Filter at $15.21
The 9-day moving average, the first filter, is also at $15.21, so if silver closes above $15.21, it will shift the weekly trend momentum, also to bullish. It looks like silver is beginning to roll over to the bullish camp.
The VC PMI also tells you that for you to use $14.89 as the level to go neutral on any long positions you have. A second close below $14.89 would activate the targets of the extreme below the mean of buy 1 (B1) at $14.66 and buy 2 (B2) at $14.34.
The VC PMI artificial intelligence automated algorithm identifies a specific structure, including the average price and two levels above and below that average price: the B1 and B2 below the average, and the sell 1 (S1) and sell 2 (S2) levels above the average or mean price. This structure identifies for you mathematically a probability based on the buy and sell levels that the market will then revert back to the mean: for B1/S1 the probability is 90% and for B2/S2 the probability is 95% of a reversion back to the mean. We recommend to our subscribers/traders to use this tool to identify the highest probability trades.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 15.19.
The projected upper bound is: 15.29.
The projected lower bound is: 14.47.
The projected closing price is: 14.88.
A white body occurred (because prices closed higher than they opened).
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 27 white candles and 22 black candles for a net of 5 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 78.0461. This is not an overbought or oversold reading. The last signal was a buy 26 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 46.17. 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 67 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 6. This is not a topping or bottoming area. The last signal was a buy 2 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 buy 1 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed down -0.002 at 14.898. Volume was 8,900% above average (trending) and Bollinger Bands were 48% narrower than normal.
Open High Low Close Volume___
14.890 14.935 14.830 14.898 3,373
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 14.88 15.14 14.94
Volatility: 19 17 19
Volume: 337 67 17
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 0.3% below its 200-period moving average and is in an downward 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 into XAG= (bullish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 47 periods.