Silver 1 OZ 999 NY (XAG=X) weak rally following a weekend terrorist drone strike that crippled Saudi Arabia’s oil industry
Gold and silver prices are higher in early U.S. trading Monday, on safe-haven demand following a weekend terrorist drone strike that crippled Saudi Arabia’s oil industry. Some metals market watchers are scratching their heads wondering why prices have not rallied more sharply on the news. December gold futures were last up $11.80 an ounce at 1,511.10. December Comex silver prices were last up $0.336 at $17.905 an ounce.
Risk aversion is very keen in the marketplace to start the trading week, following the weekend terrorist drone attacks on Saudi Arabian oil installations that have quickly taken nearly 6 million barrels a day of oil production off the market. That amounts to about 5% of world crude oil production. It’s the biggest hit to world crude oil production in modern history. The U.S. has blamed Iranian-backed terrorists and Iran, itself. President Trump said the U.S. is “locked and loaded” to respond to the situation.
December silver futures bulls still have the overall near-term technical advantage. However, a three-month-old uptrend on the daily bar chart is in jeopardy. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $18.555 an ounce.
The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at the overnight high of $18.065 and then at Friday’s high of $18.265. Next support is seen at the overnight low of $17.69 and then at last week’s low of $17.47.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 18.79.
The projected lower bound is: 17.03.
The projected closing price is: 17.91.
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 33 white candles and 17 black candles for a net of 16 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 28.3677. This is not an overbought or oversold reading. The last signal was a buy 0 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 51.67. 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 7 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 -109.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 7 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 5 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.427 at 17.852. Volume was 8,900% above average (trending) and Bollinger Bands were 85% wider than normal.
Open High Low Close Volume___
17.435 18.003 17.435 17.852 44,587
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 18.30 17.02 15.64
Volatility: 51 32 22
Volume: 4,459 892 223
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 14.2% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 73 periods.
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