On Tuesday, spot silver rose for a second straight session, lifted by renewed optimism over U.S. stimulus measures. In the latest twist, U.S. House Speaker Nancy Pelosi said, after meeting Secretary of the Treasury Steven Mnuchin, she remains hopeful of a stimulus deal before election.
During early Asian trading hours today, spot silver extended its rally by 1.1%.
On a daily chart, despite the recent technical rebound, spot silver has not yet confirmed an end to its downside price correction. It remains capped by a declining trend line drawn from August and is still trading at levels below the bottom of its previous range marked in mid-August to mid-September.
The level at $25.85 may be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at $22.87 and $21.67 respectively.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 27.22.
The projected lower bound is: 22.86.
The projected closing price is: 25.04.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 76.5795. This is not an overbought or oversold reading. The last signal was a sell 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 53.14. 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 19 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 113.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 0.405 at 25.050. Volume was 8,900% above average (trending) and Bollinger Bands were 47% narrower than normal.
Open High Low Close Volume 24.630 25.110 24.620 25.050 9,474
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 24.52 25.70 19.69 Volatility: 41 55 56 Volume: 947 189 47
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 27.2% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
Our volume indicators reflect very strong flows of volume into XAG= (bullish). Our trend forecasting oscillators are currently bearish on XAG= and have had this outlook for the last 33 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.