Silver 1 OZ 999 NY (XAG=X) testing the $16 level

Silver 1 OZ 999 NY (XAG=X) testing the $16 level

Silver 1 OZ 999 NY (XAG=X) testing the $16 level

Silver markets went back and forth during the trading session on Monday to kick off the week, as we are testing the $16 level. This is an area that is rather significant resistance, and although we are still in and uptrend, it looks as if it is going to take a lot of momentum to finally break out above there. The uptrend line underneath should continue to offer support as well, so I think given enough time there will be another attempt to break out to the upside.

Having said that, the silver market has been lagging behind the gold market, so therefore although I do think there is opportunity for this market to go higher, it will probably be a bit slower than gold as per usual. The alternate scenario is that we break down below the $15.50 level, which would be very negative and send this market down to the $15.00 level after that. If we break to the upside, the market will then start looking to go to the $16.50 level above as it is an area of previous contention.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 16.25.

The projected lower bound is: 15.46.

The projected closing price is: 15.86.

Candlesticks

A black body occurred (because prices closed lower 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 28 white candles and 21 black candles for a net of 7 white 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 33.5317. This is not an overbought or oversold reading. The last signal was a sell 3 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 54.18. 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 17 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 41. This is not a topping or bottoming area. The last signal was a sell 3 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 sell 0 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.055 at 15.833. Volume was 8,900% above average (trending) and Bollinger Bands were 37% narrower than normal.

Open High Low Close Volume___
15.888 15.937 15.800 15.833 3,025

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

Moving Averages: 10-period 50-period 200-period
Close: 15.82 15.55 15.19
Volatility: 14 16 19
Volume: 303 61 15

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 4.2% above its 200-period moving average and is in an upward 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 1 periods.

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