SILVER 1 OZ 999 NY (XAG=X) safe-haven demand has surfaced this week
Gold and silver futures prices are modestly up in early U.S. trading Wednesday. There are several factors at work supporting the two precious metals markets this week. Some mild safe-haven demand has surfaced this week, amid Brexit turmoil and on some upbeat news regarding U.S.-China trade talks. The technical chart postures for gold and silver have also turned more bullish recently. February gold futures were last up $3.70 an ounce at $1,250.80. March Comex silver was up $0.157 at $14.785 an ounce.
The just-released U.S. economic data point of the week, the consumer price index for November, came out at unchanged from October, which was right in line with market expectations. Recent U.S. inflation reports have shown very tame inflation, after data released earlier this year raised some concern regarding rising inflation becoming problematic. The metals markets did not react to the report.
World stock markets were mostly higher overnight as global traders and investors chose to focus on improving prospects for a U.S.-China trade deal, instead of the uncertainty of leadership of the United Kingdom. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Trading in the U.S. stock indexes has been volatile this week, with many stock market experts saying to expect this to be the norm for at least a while.
March silver futures bears still have the overall near-term technical advantage. However, a choppy three-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 this week’s high of $14.82 and then at $15.00. Next support is seen at this week’s low of $14.565 and then at last week’s low of $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: 15.17.
The projected lower bound is: 14.30.
The projected closing price is: 14.73.
A white body occurred (because prices closed higher 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 21 white candles and 28 black candles for a net of 7 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 69.5924. This is not an overbought or oversold reading. The last signal was a buy 10 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 60.58. 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 70 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 136.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 7 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAG= closed up 0.200 at 14.730. Volume was 8,900% above average (trending) and Bollinger Bands were 28% narrower than normal.
Open High Low Close Volume___
14.558 14.796 14.500 14.730 10,532
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 14.47 14.45 15.45
Volatility: 15 19 20
Volume: 1,053 211 53
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 4.7% below its 200-period moving average and is in an upward trend. Volatility is low 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 3 periods.