Silver/Yuan insights
I am pretty use to getting most of my charts denominated against USD but I know that the market for precious metals is international and silver has a greater commodity use than other precious metals and one of its main uses is in manufacturing so I went to poking about the various denominations and the Chinese yuan looks like it might have the most predictive power.
First
The RSI for XAGCNY called a more technical top on the monthly chart with a damn near perfect rejectoin at 69.95, 1/20th of a percent shy of overbought conditions. Both RSIs seem to have a trend line providing resistance, that will be interesting to watch
Second
The XAGCNY chart has a potential ascending triangle developing. This triangle behooves more patience in silver than some of my other charts, at least in terms of CNY. Below is an interesting chart, where this head and shoulders formation, which is kinda in the wrong position, forecast doom for the yuan against the dollar.
Third
the 100 M EMA is clearly acting as resistance on XAGCNY and, in combination with the RSI and charting, really helps define this local high
In regards to silver/usd we can see that the chart formation is still preliminary compared to the silver/yuan chart. A moving average system suggest we will be leaving ths triangle early. The divergence on the RSI for the USD chart isn't as severe as the yuan chart. I think we might find a circumstance where the Chinese drive the pumping and selling of silver while the US and other demominations provide support. Depending on how the 100 EMA acts for XAGUSD will determine a lot going forward.
My look at the Effective Federal Funds Rates shows a very possible dip to negative interest rates so precious metals should be making a run due to the hedge against inflation. Silver should be moving quicker than gold due to the rising wedge that everyone and deh momma should have seen if they follow the gold/silver ratio. Perhaps coincidentally the falling wedge target gets us to the current lower limit of the 3 st. dev Bollinger band. Neat.
Conclusion
From here on out I am going to be using XAGCNY and the Gold/Silver ratio to help time my silver/usd trades. Traditional disclaimers apply about me not being a financial advisory or a CMT.
First
The RSI for XAGCNY called a more technical top on the monthly chart with a damn near perfect rejectoin at 69.95, 1/20th of a percent shy of overbought conditions. Both RSIs seem to have a trend line providing resistance, that will be interesting to watch
Second
The XAGCNY chart has a potential ascending triangle developing. This triangle behooves more patience in silver than some of my other charts, at least in terms of CNY. Below is an interesting chart, where this head and shoulders formation, which is kinda in the wrong position, forecast doom for the yuan against the dollar.
Third
the 100 M EMA is clearly acting as resistance on XAGCNY and, in combination with the RSI and charting, really helps define this local high
In regards to silver/usd we can see that the chart formation is still preliminary compared to the silver/yuan chart. A moving average system suggest we will be leaving ths triangle early. The divergence on the RSI for the USD chart isn't as severe as the yuan chart. I think we might find a circumstance where the Chinese drive the pumping and selling of silver while the US and other demominations provide support. Depending on how the 100 EMA acts for XAGUSD will determine a lot going forward.
My look at the Effective Federal Funds Rates shows a very possible dip to negative interest rates so precious metals should be making a run due to the hedge against inflation. Silver should be moving quicker than gold due to the rising wedge that everyone and deh momma should have seen if they follow the gold/silver ratio. Perhaps coincidentally the falling wedge target gets us to the current lower limit of the 3 st. dev Bollinger band. Neat.
Conclusion
From here on out I am going to be using XAGCNY and the Gold/Silver ratio to help time my silver/usd trades. Traditional disclaimers apply about me not being a financial advisory or a CMT.
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