by Jim Wyckoff, Senior Editor, TraderPlanet.com
December gold futures closed up $9.50 at $849.00 yesterday. Prices closed near mid-range yesterday and were supported by more safe-haven buying amid a big sell off in the stock market. Gold traders ignored bearish “outside markets”–lower crude oil prices a firmer U.S. dollar. A bearish pennant pattern has formed on the daily bar chart. Prices are nearer the bottom of a well-defined trading range bound by last week’s high of $936.30 and the October low of $822.50. Gold bulls’ next upside price objective is to produce a close above resistance at $880.00. Bears’ next downside price objective is closing prices below solid technical support at $822.50. First resistance is seen at yesterday’s high of $859.20 and then at $870.00. Support is seen at $840.00 and then at yesterday’s low of $833.10.
Wyckoff’s Market Rating: 5.0.
DECEMBER SILVER
December silver futures closed down 69.0 cents at $10.37 an ounce yesterday. Prices closed nearer the session low amid bearish “outside markets”–lower crude oil prices a firmer U.S. dollar and a plunging U.S. stock market. Bears have the near-term technical advantage as prices are in a three- month-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at this week’s high of $11.195 an ounce. The next downside price objective for the bears is closing prices below solid technical support at last week’s contract low of $9.40. First resistance is seen at $10.80 and then at $11.00. Next support is seen at yesterday’s low of $10.035 and then at $9.75.
Wyckoff’s Market Rating: 3.0.
DECEMBER N.Y. COPPER
December N.Y. copper closed down 2,295 points at 216.50 cents yesterday. Prices closed near the session low yesterday amid bearish “outside markets”–lower crude oil prices a firmer U.S. dollar and a plunging U.S. stock market. Bears still have the near-term technical advantage in copper. Prices are still in a three-month-old downtrend on the daily bar chart. The next downside price objective for the bears is closing prices below solid technical support at the contract low of 205.00 cents. Bulls’ next upside objective is pushing and closing prices above solid technical resistance at this week’s high of 252.95 cents. First support is seen at yesterday’s low of 214.60 cents and then at 210.00 cents. First resistance is seen at 220.00 cents and then at 225.00 cents.
Wyckoff’s Market Rating: 1.5.
