Silver 1 OZ 999 NY (XAG=X) will continue to see plenty of pressure

Silver 1 OZ 999 NY (XAG=X) will continue to see plenty of pressure

Silver 1 OZ 999 NY (XAG=X) will continue to see plenty of pressure

Silver markets initially tried to rally during the trading session after gapping higher and then pulling back to fill that gap. Furthermore, the market reached towards the $15.00 level before selling off yet again. At this point, the market looks likely that it will continue to see plenty of pressure above. Remember, silver is going to continue to see a lot of negativity due to the fact that it is an industrial metal, not just a precious metal. That being said, I would anticipate a lot of noise going back and forth as the market will undulate between the precious metals fundamentals and the industrial ones.

That being said, this has been a nice rally, but silver is probably going to continue to find plenty of selling pressure. However, if we were to break above the $15.25 level, then it’s likely that the market would go looking towards the $16.50 level. Having said that, it’s very unlikely that the market is going to simply go in one direction or the other for a longer-term move. Ultimately, the market could go back down towards the $13.00 level, where I would anticipate seeing a bit of support. I think that we are going to continue to see a lot of noisy action in this market, so therefore it’s likely that we will continue to see volatility that you will need to prepare for in the position size that you place in this sometimes dangerous market.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 15.68.

The projected upper bound is: 15.65.

The projected lower bound is: 12.89.

The projected closing price is: 14.27.

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 26 white candles and 24 black candles for a net of 2 white candles.

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 91.7782. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 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 41.52. 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 2 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 3. This is not a topping or bottoming area. The last signal was a buy 4 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 0 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAG= closed down -0.090 at 14.340. Volume was 8,900% above average (trending) and Bollinger Bands were 308% wider than normal.

Open     High      Low     Close     Volume___
14.480 14.510 14.240 14.340 789
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 13.31 16.77 17.04
Volatility: 112 59 37
Volume: 79 16 4

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 15.9% below its 200-period moving average and is in an downward 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 out of XAG= (bearish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 19 periods.

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