XAG/HKD Currency Pair Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Strong day for XAG/HKD currency pair price on Friday rising 6.42% to HK$245.59
(Updated on May 17, 2024)
The XAG/HKD currency pair price gained 6.42% on the last trading day (Friday, 17th May 2024), rising from HK$230.77 to HK$245.59. During the last trading day the currency pair fluctuated 7.23% from a day low at HK$229.76 to a day high of HK$246.38. The price has risen in 7 of the last 10 days and is up by 18.38% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 1 more shares were traded than the day before. In total, 3 thousand shares were bought and sold for approximately HK$615.69 thousand.
The currency pair lies in the upper part of a wide and strong rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at HK$245.81 will firstly indicate a stronger rate of rising. Given the current short-term trend, the currency pair is expected to rise 26.42% during the next 3 months and, with a 90% probability hold a price between HK$273.12 and HK$310.74 at the end of this 3-month period.
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XAGHKD Signals & Forecast
The XAG/HKD currency pair holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at HK$227.64 and HK$217.53. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, April 30, 2024, and so far it has risen 19.35%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). XAG/HKD has increased volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. Higher liquidity also reduces the general risk.
Support, Risk & Stop-loss for XAG/HKD currency pair
On the downside, the currency pair finds support just below today's level from accumulated volume at HK$190.24 and HK$190.00. There is a natural risk involved when a currency pair is testing a support level, since if this is broken, the currency pair then may fall to the next support level. In this case, XAG/HKD finds support just below today's level at HK$190.24. If this is broken, then the next support from accumulated volume will be at HK$190.00 and HK$185.21.
This currency pair has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the currency pair moved HK$16.62 between high and low, or 7.23%. For the last week, the currency pair has had daily average volatility of 3.41%.
The XAG/HKD currency pair is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some currency pairs may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the currency pair manages to break the trend before that occurs.
Our recommended stop-loss: HK$237.19 (-3.42%) (This currency pair has medium daily movements and this gives medium risk. The RSI14 is 79 and this increases the risk substantially. There is a buy signal from a pivot bottom found 13 days ago.)
Trading Expectations (XAGHKD) For The Upcoming Trading Day Of Monday 20th
For the upcoming trading day on Monday, 20th we expect XAG/HKD to open at HK$240.57, and during the day (based on 14 day Average True Range), to move between HK$239.28 and HK$251.90, which gives a possible trading interval of +/-HK$6.31 (+/-2.57%) up or down from last closing price. If XAG/HKD takes out the full calculated possible swing range there will be an estimated 5.14% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ HK$190.24, some HK$55.34 (22.53%) from the current price of HK$245.59, our system finds the risk reward attractive.
Is XAG/HKD currency pair A Buy?
XAG/HKD holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this currency pair since the last evaluation from a Buy to a Hold/Accumulate candidate.
Current score: 0.000 Hold/Accumulate Downgraded
Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.
Predicted Opening Price for XAG/HKD of Monday, May 20, 2024
| Fair opening price May 20, 2024 | Current price |
|---|---|
| HK$240.57 ( 2.04%) | HK$245.59 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for XAGHKD
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 257.19 | 4.73 % | |
| R2 | 250.84 | 2.14 % | ||
| R1 | 246.92 | 0.543 % | ||
| Current price: | 245.59 | |||
| Support | S1 | 234.22 | -4.63 % | |
| S2 | 230.30 | -6.22 % | ||
| S3 | 223.95 | -8.81 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0 | . | |
| R2 | 0 | . | ||
| R1 | 0 | . | ||
| Current price | 245.59 | |||
| Support | S1 | 190.24 | -22.53% | |
| S2 | 190.00 | -22.64% | ||
| S3 | 185.21 | -24.58% |
FAQ
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