Silver 1 OZ 999 NY (XAG=X) weaker U.S. dollar index and higher crude oil prices
Gold and silver futures prices are moderately higher in early U.S. trading Monday, supported in part by a weaker U.S. dollar index and higher crude oil prices. February gold futures were last up $2.20 an ounce at $1,243.70. March Comex silver was up $0.048 at $14.685 an ounce.
An eventful trading week lies ahead. The U.S. Federal Reserve’s Open Market Committee (FOMC) meets Tuesday and Wednesday to discuss monetary policy, while the U.S. government could be shut down at the end of the week if Congress and President Trump cannot agree on a budget plan. Most expected the FOMC to raise interest rates by 0.25% on Wednesday afternoon, at the conclusion of their meeting. Also, the Chinese government could this weeek announce major new economic initiatives to stimulate the world’s second-largest economy. China’s central bank made an unexpected injection of money into its financial system on Monday.
A heavy slate of U.S. economic data is also due out late this week, including the first estimate of third-quarter gross domestic product.
March silver futures bears still have the overall near-term technical advantage. However, a choppy four-week-old uptrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the October high of $15.055 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the November low of $13.985. First resistance is seen at last week’s high of $14.90 and then at $15.00. Next support is seen at last week’s low of $14.56 and then at $14.28.
Overall, the bias in prices is: Sideways
By the way, prices are vulnerable to a correction towards 14.70.
The projected upper bound is: 15.09.
The projected lower bound is: 14.23.
The projected closing price is: 14.66.
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 23 white candles and 27 black candles for a net of 4 black 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 60.4057. This is not an overbought or oversold reading. The last signal was a buy 13 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 56.16. 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 buy 73 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 69. This is not a topping or bottoming area. The last signal was a sell 1 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 buy 10 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.084 at 14.650. Volume was 8,900% above average (trending) and Bollinger Bands were 16% narrower than normal.
Open High Low Close Volume___
14.567 14.701 14.510 14.650 7,375
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 14.59 14.46 15.43
Volatility: 15 19 20
Volume: 738 148 37
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 5.0% below 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 6 periods.