by Jim Wyckoff, Senior Analsyt TraderPlanet.com

FEBRUARY GOLD

February gold was lower overnight as it consolidates some of last week’s rally. Stochastics and the RSI are overbought and are turning neutral hinting that a double top with the reaction high crossing at 844.20 might be forming. If February extends this month’s rally, the November 7th reaction high crossing at 855.00 is the next upside target. Closes below the 20-day moving average crossing at 812.60 would confirm that a double top has been posted. From a broad perspective, February gold needs to close above November’s high crossing at 855.00 or below November’s low crossing at 780.40 to confirm a breakout of this trading range. First resistance is the overnight high crossing at 847.40 then the reaction high crossing at 855.00. First support is the 10-day moving average crossing at 818.90 then the 20-day moving average crossing at 812.60.

MARCH SILVER

March silver was steady to slightly lower overnight as it consolidates some of last week’s rally. Stochastics and the RSI are becoming overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends last week’s rally, the reaction high crossing at 15.220 is the next upside target. Closes below the 10-day moving average crossing at 14.529 would signal that a double top with the December 11th reaction high has been posted. First resistance is the overnight high crossing at 15.08 then the reaction high crossing at 15.220. First support is the 10-day moving average crossing at 14.529 then the 20-day moving average crossing at 14.515.

MARCH COPPER

March copper was steady to slightly lower overnight as it consolidates some of the rally off this month’s low. Stochastics and the RSI are overbought and are turning bearish hinting that a double top with the early-December high might be forming. Closes below the 10-day moving average crossing at 303.89 would confirm that a double top has been posted. If March extends the rally off this month’s low, the 50% retracement level of the October-December decline crossing at 330.22 is the next upside target. First resistance is last Thursday’s high crossing at 321.00 then the 50% retracement level crossing at 330.22 First support is the overnight low crossing at 306.65 then the 20-day moving average crossing at 304.19.