PRECIOUS METALS
April gold closed higher on Monday as it extends the rally off January’s low. The high-range close sets the stage for a steady to higher opening when Tuesday’s night session begins trading. Stochastics and the RSI are overbought, diverging but are neutral to bullish signaling that sideways to higher prices are possible near-term. If April extends the rally off December’s low, the 75% retracement level of the August-December decline crossing at 1368.00 is the next upside target. Closes below the 20-day moving average crossing at 1303.30 would confirm that a short-term top has been posted. First resistance is the 75% retracement level of the August-December decline crossing at 1368.00. Second resistance is the 87% retracement level of the August-December decline crossing at 1398.00. First support is the 10-day moving average crossing at 1330.00. Second support is the 20-day moving average crossing at 1303.30.
May silver closed higher due to short covering on Monday as it consolidates some of last week’s decline. The mid-range close set the stage for a steady opening when Tuesday’s night session begins trading. Stochastics and the RSI are neutral to bearish signaling that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 20.903 would confirm that a short-term top has been posted. If May renews the rally off the late-January low, the 25% retracement level of the July-December decline crossing at 22.802 is the next upside target. First resistance is last Monday’s high crossing at 22.215. Second resistance is the 25% retracement level of the July-December decline crossing at 22.802. First support is last Thursday’s low crossing at 21.025. Second support is the 20-day moving average crossing at 20.903.
May copper closed lower on Monday falling just short of testing November’s low crossing at 315.00. The mid-range close sets the stage for a steady to lower opening when Tuesday’s night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If May extends the decline off this month’s high, November’s low crossing at 315.00 is the next downside target. Closes above the 10-day moving average crossing at 323.12 would temper the near-term bearish outlook. First resistance is the 10-day moving average crossing at 323.12. Second resistance is February’s high crossing at 331.30. First support is today’s low crossing at 315.65. Second support is November’s low crossing at 315.00.
