by Jim Wyckoff, Senior Analyst, TraderPlanet.com
December gold futures closed up $87.50 at $868.00 yesterday. Prices closed near the session high yesterday, hit a fresh six-week high and produced the biggest one-day gains in futures tradinghistory. Flight-to-quality buying surfaced in gold yesterday, amid the U.S. financial crisis. While the bulls did gain fresh upside near-term technical momentum yesterday, they will have to show that important follow-through buying strength the rest of this week. Keep in mind the present economic environment is deflationary, and that is bearish for all commodity markets, including gold and crude oil. A sharply lower U.S. dollar and sharply higher crude oil pricesyesterday also boosted gold. Gold bulls’ next upside price objective is to produce a close above major psychological resistance at $900.00. Bears’ next downside price objective is closing prices below solid technical support at $850.00. First resistance is seen at yesterday’s high of $872.90 and then at $885.00. Support is seen at $850.00 and then at $838.00.
Wyckoff’s MarketRating: 6.0.
December silver futures closed up 153.3 cents at $12.05 an ounce yesterday. Prices closed near the session high yesterday on short covering and fresh speculative buying. Bullish “outside markets”–sharply higher crude oil and gold prices and a lower U.S. dollar–boosted silver yesterday. Silver bears still have the overall near-term technical advantage. A two-month-old downtrend line is still in place on the daily bar chart. Bulls’ next upside price objective is closing prices above technical and psychological resistance at $13.00 an ounce. The next downside price objective for the bears is closing prices below psychological support at $11.00. First resistance is seen at yesterday’s high of $12.17 and then at $12.50. Next support is seen at $11.75 and then at $11.50.
Wyckoff’s Market Rating: 4.0.
DECEMBER N.Y. COPPER
December N.Y. copper closed up 50 points at 309.40 cents yesterday. Prices closed nearer the session high in quiet trading yesterday. Tepid short covering in a bear market was featured yesterday. Bullish “outside markets”–sharply higher crude oil and gold prices and a lower U.S. dollar–did not help copper bulls yesterday. Bears still have the near-term technical advantage in copper. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. Bulls’ next upside objective is pushing and closing prices above solid technical resistance at last week’s high of 323.00 cents. First support is seen at 305.00 cents and then at this week’s low of 302.00 cents. First resistance is seen at yesterday’s high of 312.50 cents and then at 315.00 cents.
Wyckoff’s Market Rating: 3.0