Silver 1 OZ 999 NY (XAG=X) Federal Reserve more dovish
Silver markets rallied towards the $15 level early during the day on Wednesday, reaching towards significant resistance in the process. At this point, I think that the market breaking above there, and more importantly staying above there on a daily close, could be a buying scenario all the way to at least the $16 level.
If we break out I think that the $16.00 level will offer significant resistance, but I think we probably even grind our way towards the $17 level higher. If we were to turn around to break down below the $14.00 level, then I think the market probably drops down to the $12.00 level as well. Expect a lot of noise and choppiness, but we have a clear buy signal if we can break above it.
Overall, the bias in prices is: Sideways
By the way, prices are vulnerable to a correction towards 14.70.
The projected upper bound is: 15.08.
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.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 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 53.7370. This is not an overbought or oversold reading. The last signal was a buy 15 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 55.95. 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 75 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 88. This is not a topping or bottoming area. The last signal was a sell 3 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 12 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.010 at 14.649. Volume was 8,900% above average (trending) and Bollinger Bands were 13% narrower than normal.
Open High Low Close Volume___
14.639 14.821 14.580 14.649 9,586
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 14.61 14.47 15.41
Volatility: 14 19 20
Volume: 959 192 48
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 4.9% 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 8 periods.