Silver 1 OZ 999 NY (XAG=X) testing the bottom of an uptrend line that has been broken

Silver 1 OZ 999 NY (XAG=X) testing the bottom of an uptrend line that has been broken

Silver 1 OZ 999 NY (XAG=X) testing the bottom of an uptrend line that has been broken

Silver markets have rallied significantly during the trading session on Tuesday, reaching towards the $17.85 level as I record this. That being said though, we are testing the bottom of an uptrend line that had been broken. If we can break above there though, it’s likely that the market will continue to go much higher.

Ultimately, pullbacks at this point should be buying opportunities and therefore silver looks likely to continue going higher. That being said though, the 50 day EMA underneath should be a massive support level as well but given enough time it’s likely that the market participants will continue to flood into silver as we are starting here rumors of bank runs and China.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 18.45.

The projected lower bound is: 17.37.

The projected closing price is: 17.91.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 93.7329. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 70.44. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 79 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 212.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 10 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 9 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed up 0.114 at 17.899. Volume was 8,900% above average (trending) and Bollinger Bands were 14% narrower than normal.

Open     High      Low     Close     Volume___
17.766 18.044 17.690 17.899 31,435
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 17.23 17.24 16.34
Volatility: 12 20 24
Volume: 3,144 629 157

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 9.5% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect very strong flows of volume into XAG= (bullish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 4 periods. Our momentum oscillator is currently indicating that XAG= is currently in an overbought condition.

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