PRECIOUS METALS
February gold closed lower on Monday signaling a possible end to the short covering bounce off December’s low. The low-range close sets the stage for a steady to lower opening when Tuesday’s night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 1224.60 are needed to confirm that a low has been posted. If February renews the decline off August’s high, weekly support crossing at 1179.40 is the next downside target. First resistance is the 20-day moving average crossing at 1224.60. Second resistance is the reaction high crossing at 1267.50. First support is December’s low crossing at 1186.00. Second support is weekly support crossing at 1179.40.
March silver closed lower on Monday signaling a possible end to the rebound off last week’s low. The low-range close set the stage for a steady to lower opening when Tuesday’s night session begins trading. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. If March renews the rally off December’s low, the reaction high crossing at 20.920 is the next upside target. If March renews the decline off October’s high, June’s low crossing at 18.600 is the next downside target. First resistance is the reaction high crossing at 20.480. Second resistance is the reaction high crossing at 20.920. First support is December’s low crossing at 18.890. Second support is June’s low crossing at 18.600.
March copper posted a quiet inside day with a lower close on Monday as it consolidates some of the rally off November’s low. The mid-range close sets the stage for a steady opening when Tuesday’s night session begins trading. Stochastics and the RSI are overbought but are neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the aforementioned rally, the 38% retracement level of the 2012-2013-decline crossing at 355.38 is the next upside target. Closes below the 20-day moving average crossing at 329.61 would confirm that a short-term top has been posted. First resistance is last week’s high crossing at 342.00. Second resistance is the 38% retracement level of the 2012-2013-decline crossing at 355.38. First support is the 10-day moving average crossing at 334.19. Second support is the 20-day moving average crossing at 329.61.
