Silver 1 OZ 999 NY (XAG=X) trying to find a bit of support

Silver 1 OZ 999 NY (XAG=X) trying to find a bit of support

Silver 1 OZ 999 NY (XAG=X) trying to find a bit of support

Silver markets pulled back a bit during the trading session on Thursday to test the 50 day EMA, an area that a lot of traders will be paying attention to. At this point, the market has been a bit listless, but let us not forget that the silver markets are highly sensitive to risk appetite and of course the US dollar. Ultimately, the market has been trying to find a bit of support in this general vicinity, so I think a bounce probably makes quite a bit of sense. However, I would not be willing to buy until we get above the $18.00 level, as it is a large, round, psychologically significant figure that will of course attract a lot of attention. By breaking above there, the market is likely to go towards the $19.00 level above, an area that will of course attract a lot of attention in and of itself. I believe that this market continues to chop back and forth, perhaps trying to find some type of directionality.

If we break down below the 50 day EMA then I think the market goes looking towards the $17.00 level for support. The 200 day EMA is sitting just below there, so it should offer quite a bit of support. Ultimately, the market will continue to offer plenty of opportunities longer-term, and I do think that we go higher over the longer term. With this, I like the idea of looking for value and it does appear that we are starting to find some here. However, I would be very cautious about jumping “all in” at this level, rather I would prefer to build up a core position.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 18.30.

The projected lower bound is: 17.35.

The projected closing price is: 17.83.

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 29 white candles and 20 black candles for a net of 9 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 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 36.3556. This is not an overbought or oversold reading. The last signal was a buy 6 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 51.29. 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 11 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 -114.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 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 sell 8 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.009 at 17.809. Volume was 8,900% above average (trending) and Bollinger Bands were 54% narrower than normal.

Open     High      Low     Close     Volume___
17.819 17.908 17.580 17.809 38,783
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 17.92 17.40 16.62
Volatility: 16 17 24
Volume: 3,878 776 194

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 7.2% 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bullish on XAG= and have had this outlook for the last 24 periods.

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