February gold posted a key reversal up due to short covering on Wednesday on growing concerns that the Fed will begin to scale back is QE-3 stimulus program. The high-range close sets the stage for a steady to higher opening when Thursday’s night session begins trading. Stochastics and the RSI are oversold, diverging but remain neutral to bearish signaling that additional weakness is still possible near-term. If February extends the decline off August’s high, June’s low crossing at 1187.90 is the next downside target. Closes above the 20-day moving average crossing at 1263.40 are needed to confirm that a low has been posted. First resistance is today’s high crossing at 1251.50. Second resistance is the 20-day moving average crossing at 1263.40. First support is today’s low crossing at 1210.80. Second support is June’s low crossing at 1187.90.
January silver closed sharply higher on Wednesday due to short covering as it consolidated some of the declined off August’s high. The high-range close set the stage for a steady to higher opening when Thursday’s night session begins trading. Stochastics and the RSI are oversold but are turning neutral to bullish hinting that a low might be in or is near. However, January needs to close above the 20-day moving average crossing at 20.348 to confirm that a short-term low has been posted. If January extends the decline off October ’s high, June’s low crossing at 18.615 is the next downside target. First resistance is the reaction high crossing at 20.245. Second resistance is the 20-day moving average crossing at 20.348. First support is today’s low crossing at 18.900. Second support is June’s low crossing at 18.615.
January copper closed sharply higher on Wednesday. The high-range close sets the stage for a steady to higher opening when Thursday’s night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. If January extends today’s rally, the reaction high crossing at 332.80 is the next upside target. If January renews the decline off October’s high, the 75% retracement level of the June-August rally crossing at 312.66 is the next downside target. First resistance is the reaction high crossing at 327.35. Second resistance is the reaction high crossing at 332.80. First support is November’s low crossing at 313.50. Second support is the 75% retracement level of the June-August rally crossing at 312.66.
