The dollar index has backed off from its earlier 3 month high at 78.14, and is now trading just 8 ticks higher at 77.77. The metals rallied in sympathy with this break, along with crude oil, which was surprisingly bid this morning even in the face of the higher dollar.
Feb Gold had a high today at 1118.0 and a low at 1097.6 We are currently up 3.50 at 1110.9
March silver is up 115 at 17310, after posting a low at 17.110 with a high tick at 17.390.
Feb Crude is at 7441, up 33. It posted a low at 7355, and a high at 7565. On a day marked by continued strength in the US dollar, it was very interesting that crude maintained a bid.
On a technical note, Feb crude had an October high at 83+ change. Feb crude’s recent low on Monday, just 4 sessions ago, had us down at the 71 level. The first good resistance for a serious rally should be around the 77.00 area.
Feb gold had a high tick yesterday at the 1140 level, which is sitting on the charts as upward resistance. the 1.100 level is where we have support with yesterday’s and today’s low in the contract. If the 1100 level fails, the next band of support to look at is the 1070 October break, all the way down to the 1035 level.
These are levels plain to see on the daily charts.
Finally, March Silver found support yesterday and today on the daily charts at our lows right at the 1711 level. Support is at the 17.105 level, after testing that area two days in a row, if that fails to hold, it opens the door for a break down to our November lows at 16.80 to 16.20.
Nothing like some volatility to push the envelope of support and resistance levels.
Good Trading