SILVER 1 OZ 999 NY (XAG=X) Target $17.50

SILVER 1 OZ 999 NY (XAG=X) Target $17.50

SILVER 1 OZ 999 NY (XAG=X) Target $17.50

While there is room for gold to continue to outperform silver in the near-term, one research firm said the current relationship between the two metals is unsustainable.

Silver is forecasted to outperform gold next year as economists at Capital Economics expect the Federal Reserve to be forced to end its rate hike cycle. Growing demand for industrial metals will also provide much-needed support for the grey metal.

The analysts also see potential in silver as investor sentiment remains exceptionally negative.

“Bearish investor sentiment means there is only limited scope for investor sentiment to deteriorate and there is potential for a short covering rally to exacerbate any upward price pressure,” they said. “Investor sentiment towards silver recently reached the weakest level since records began in March 1995.”

Another reason the analysts are positive about silver is because the metal’s supply is expected to decline.

“While silver mine supply rebounded this year, the pace of supply growth is set to slow appreciably next year, partly due to a lack of new mines and expansions that are set to come on stream,” the analysts said.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 14.68.

The projected lower bound is: 13.76.

The projected closing price is: 14.22.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

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 63.7246. This is not an overbought or oversold reading. The last signal was a buy 10 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 42.59. 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 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 156.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 9 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 6 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.020 at 14.250. Volume was -0% below average (neutral) and Bollinger Bands were 2% narrower than normal.

Open High Low Close Volume___
14.294 14.430 14.130 14.250 0

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

Moving Averages: 10-period 50-period 200-period
Close: 14.17 14.83 16.12
Volatility: 11 20 20
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.

Summary

PREC.M.XAG= is currently 11.6% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 65 periods.

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