Silver 1 OZ 999 NY (XAG=X) Traders “Buy The Dip”
A sign of a strong market is when prices see a corrective pullback in an uptrend, as traders step in do to some bargain hunting and “buy the dip.” Such is the case with the gold and silver markets late this week. Prices are moderately higher in early U.S. trading Friday morning. The gains in the precious metals come despite a resurgent U.S. dollar index that hit a five-week high overnight. April gold futures were last up $4.10 an ounce at $1,318.30. March Comex silver was last up $0.122 at $15.835 an ounce.
European and Asian stock markets were mixed overnight. It’s been a quieter trading week this week, what with Chinese markets and some other Asian markets closed for the Lunar New Year holiday. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.
Underlying themes still in play for the markets include perceptions of slowing world economic growth, with maybe the U.S. being the outlier after its strong jobs growth reported last Friday. European Union and Chinese economic reports lately have been mostly downbeat. The other matter on the front burner for traders and investors is the U.S.-China trade war, which sees a March 1 deadline for either getting a resolution on the matter, or ratcheting up of sanctions between the world’s two largest economies.
A feature in the marketplace this week is the rallying U.S. dollar. Raw commodity market bulls, including the metals bulls, don’t want to see a strong greenback because it makes those commodities priced in U.S. dollars on the world market more expensive to purchase in non-U.S. currency.
The other key outside market today sees Nymex crude oil prices slightly weaker trading around $52.50 a barrel. Prices have backed down from this week’s 2.5-month high of $55.75 a barrel.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 15.34.
The projected upper bound is: 16.25.
The projected lower bound is: 15.46.
The projected closing price is: 15.85.
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 29 white candles and 21 black candles for a net of 8 white candles.
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 28.2733. This is not an overbought or oversold reading. The last signal was a sell 4 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 58.80. 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 5 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 23. This is not a topping or bottoming area. The last signal was a sell 4 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 sell 2 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.113 at 15.823. Volume was -0% below average (neutral) and Bollinger Bands were 14% wider than normal.
Open High Low Close Volume___
15.737 15.865 15.620 15.823 0
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 15.85 15.25 15.23
Volatility: 14 17 19
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.
PREC.M.XAG= is currently 3.9% above its 200-period moving average and is in an upward 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 into XAG= (bullish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 44 periods.
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