by Jim Wyckoff, Senior Analyst TraderPlanet.com
FEBRUARY GOLD
February gold futures closed down $3.90 at $803.70 today. Prices closed nearer the session low today and were pressured on s stronger U.S. dollar and lower crude oil prices today. There is the specter of a bearish descending triangle pattern forming on the daily bar chart. And if the U.S. dollar continues to recover, the gold bulls would be in trouble. Gold bulls’ next upside price objective is to produce a close above solid resistance at $825.00. Bears’ next downside price objective is closing prices below solid chart support at $780.00. First resistance is seen at today’s high of $813.00 and then at $820.00. Support is seen at today’s low of $797.00 and then at $792.60.
Wyckoff’s Market Rating: 6.5.
MARCH SILVER
March silver futures closed down 0.5 cents at $14.460 an ounce today. Prices closed near mid-range. Prices are still in a four-week-old downtrend on the daily bar chart. There is the specter of a bullish falling wedge pattern on the daily bar chart, but for that to play out prices would have to see a big and bullish upside “breakout” this week. Bulls’ next upside price objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price objective for the bears is closing prices below solid technical support at this week’s low of $13.96. First resistance is seen at today’s high of $14.58 and then at $14.75. Next support is seen at $14.25 and then at $14.185.
Wyckoff’s Market Rating: 6.0.
MARCH N.Y. COPPER
March N.Y. copper closed up 200 points at 304.00 cents today. Prices closed near mid-range. Short covering in a bear market was featured. Bears still have the technical advantage. A two-month-old downtrend is still in place on the daily bar chart. Bulls’ next upside objective is closing prices above strong technical resistance at this week’s high of 320.85 cents. The next downside price objective for the bears is closing prices below solid chart support at the November low of 291.55 cents. First resistance is seen at today’s high of 307.85 cents and then at 310.00 cents. First support is seen at 300.00 cents and then at this week’s low of 297.70 cents.
Wyckoff’s Market Rating: 3.0.
