Silver(Sl1!) closed at $16.15 from an opening price of $15.75 for a gain of $0.40(+2.54%) today. This move comes after a recent break above trendline resistance which was followed by 4 days of price holding above the trendline. This hold above the trendline saw 4 doji candles form which are indecision candles. A doji candle is a price candle with a small body, and upper/lower wicks of relatively the same length. Today’s candle closed above the upper wicks of the preceding doji/indecision candles which indicates that traders are no longer indecisive, and since they moved price higher the trend that follows should be a continued move to the upside.
The Relative Strength Index(RSI) show the green RSI line rising up off of the 50 level which is the midpoint of the total RSI range. An RSI reading above 50 indicates bullish price momentum while a reading below 50 indicates bearish price momentum. The purple RSI signal line has also now crossed above the 50 level as well which indicates that intermediate-term momentum is shifting bullish. Both the RSI line and signal line rising together is a sign of bullish momentum.
The Price Percent Oscillator(PPO) shows the green PPO line and purple signal line rising above the 0 level with the green PPO line above the purple signal line and indicates bullish momentum behind price. When both lines are trending above the 0 level the overall momentum behind price is considered bullish, while both lines trending below the 0 level would indicate overall bearish momentum. As long as the green PPO line is trending above the purple signal line, and both lines are trending up from the 0 level the current bullish momentum behind price will be sustained.
The Average Directional Movement Index(ADX) show the green direction line trending above the purple direction line which indicates a positive trend in price. The histogram in the background has also begun to rise which indicates that the trend direction is increasing in strength. In general during an uptrend, you want to see the green line rising above the purple line and for the histogram bars to be rising as a sign that the trend is increasing in strength.
Volume still remains relatively low when compared to recent advances and declines in price shown in the past. In order for the current uptrend to hold we need to see volume increase in order to sustain the move higher.
Overall, silver is looking good after the recent break above the orange trendline, but still needs to take out overhead resistance in the $16.50 area. The trend and momentum indicators are leaning bullish, but the lack of volume is the concerning part about this move higher. Should price break above $16.50 we should start to see more volume appear, but until that $16.50 level is taken out there is still a chance that this breakout could fail and lead to a price reversal. The stop-loss level has been moved up on today’s breakout and now rests at $14.70. This is just below the last base, or area of consolidation, prior to the break above the orange trendline. This is considered to be the last area of demand prior to the advance in price thus making it the best stop-loss level for long trades. Should price fall below that level the short-term bullish bias in price would be at risk of shifting bearish.
The Relative Strength Index(RSI) show the green RSI line rising up off of the 50 level which is the midpoint of the total RSI range. An RSI reading above 50 indicates bullish price momentum while a reading below 50 indicates bearish price momentum. The purple RSI signal line has also now crossed above the 50 level as well which indicates that intermediate-term momentum is shifting bullish. Both the RSI line and signal line rising together is a sign of bullish momentum.
The Price Percent Oscillator(PPO) shows the green PPO line and purple signal line rising above the 0 level with the green PPO line above the purple signal line and indicates bullish momentum behind price. When both lines are trending above the 0 level the overall momentum behind price is considered bullish, while both lines trending below the 0 level would indicate overall bearish momentum. As long as the green PPO line is trending above the purple signal line, and both lines are trending up from the 0 level the current bullish momentum behind price will be sustained.
The Average Directional Movement Index(ADX) show the green direction line trending above the purple direction line which indicates a positive trend in price. The histogram in the background has also begun to rise which indicates that the trend direction is increasing in strength. In general during an uptrend, you want to see the green line rising above the purple line and for the histogram bars to be rising as a sign that the trend is increasing in strength.
Volume still remains relatively low when compared to recent advances and declines in price shown in the past. In order for the current uptrend to hold we need to see volume increase in order to sustain the move higher.
Overall, silver is looking good after the recent break above the orange trendline, but still needs to take out overhead resistance in the $16.50 area. The trend and momentum indicators are leaning bullish, but the lack of volume is the concerning part about this move higher. Should price break above $16.50 we should start to see more volume appear, but until that $16.50 level is taken out there is still a chance that this breakout could fail and lead to a price reversal. The stop-loss level has been moved up on today’s breakout and now rests at $14.70. This is just below the last base, or area of consolidation, prior to the break above the orange trendline. This is considered to be the last area of demand prior to the advance in price thus making it the best stop-loss level for long trades. Should price fall below that level the short-term bullish bias in price would be at risk of shifting bearish.