METALS: February gold futures closed up $41.10 an ounce at $1,216.70 today. Prices closed near the session high after plunging to a three-week low in overnight trading. Prices today hit a fresh five-week high, while scoring a huge, bullish “outside day” up on the daily bar chart. The bears today quickly became exhausted and the bulls have regained upside technical momentum. Heavy short covering, bargain hunting, a lower U.S. dollar index and a bounce in crude oil prices all boosted gold today. Bears do still have the overall near-term technical advantage. However, a 4.5-month-old downtrend on the daily bar chart was negated today. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the October high of $1,256.20. Bears’ next near-term downside price breakout objective is closing prices below solid technical support at last week’s low of $1,163.90. First resistance is seen at today’s high of $1,219.20 and then at $1,225.00. First support is seen at $1,208.20 and then at $1,200.00. Wyckoff’s Market Rating: 3.0
March silver futures closed up $1.099 at $16.655 today. Prices closed nearer the session high after hitting a contract and five-year low early on today. Prices also scored a big and bullish “key reversal” up on the daily bar chart, which suggests the bears have become exhausted and a market bottom is in place. By the close today the bulls had good upside momentum on their side as prices hit a four-week high. The silver bears still have the overall near-term technical advantage. However, a four-month-old downtrend on the daily bar chart was negated today. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $15.41. First resistance is seen at today’s high of $16.81 and then at $17.00. Next support is seen at $16.50 and then at $16.00. Wyckoff’s Market Rating: 3.0
March N.Y. copper closed up 555 points at 290.15 cents today. Prices closed near the session high after hitting a contract and multi-year low today. Today’s high-range close does suggest the bears became exhausted at the lower price levels. Good follow-through buying early this week would suggest a market bottom is in place. But right now the bears have the solid near-term technical advantage. Copper bulls’ next upside breakout objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at today’s contract low of 277.75 cents. First resistance is seen at today’s high of 290.55 cents and then at 292.50 cents. First support is seen at today’s low of 2.8750 cents and then at last week’s low of 284.35 cents. Wyckoff’s Market Rating: 1.5
