Daily Spot: Metals
A weekly summary of one complex, including daily updates of other developments elsewhere.[pay]
Gold Apr (GCJ) Worth the wait. Friday’s dip to 1342.50-1345.00 support had held through Monday. That made 1361.00‘s retest likely. Its retest came in the form of a $15 surge to 1365.00 that also attacked 1369.00. So long as 1361.00 holds any test as support, the 1376.00 target’s test could come Wednesday.
Copper Mar (HGH) A resistance too far. Last week’s testing of 4.56 resistance was probed intraday and overnight. But Monday’s attempt to confirm Fridays’ breakout was retraced to close negative on the day. This setup indicates that the rally’s sponsorship has lapsed. A pullback has room down to 4.35 before sellers gain traction.
Dollar Basket Mar (DXH) Head & Shoulders below the rest. An inverted Head & Shoulders has formed from the temporary dip back to last Thursday. Tuesday’s close above 77.85 suggests the right shoulder has finished forming. A fresh high above 78.25-78.33 would target 79.00 and 79.78.
30-year Treasury Mar (USH) Hunkering down ahead of Ben? Monday’s close back above 118’00 never gained traction for a corrective bounce. Gravity continued to pull price down to 117’10. Unless rejected immediately by closing Wednesday back above 118’04, the drop is extending to next target 116’14. An immediate recovery would suggest Tuesday’s extra dip was defensive posturing ahead of Bernanke’s House testimony Wednesday.
Crude Oil Mar (CLH) Catching its breath to keep new lows alive. Tuesday’s gap down tested 86.00, which was the pivotal low (low prior to the actual low) of January’s decline. Extending down without delay could have quickly bottomed. Instead a bounce to 88.00 has refueled the drop, next targeting 84.00. A bigger bounce to 88.40 may develop, first.
Natural Gas Mar (NGH) Falling knife. Although lower lows fulfilled lower objectives, Tuesday’s second consecutive lower close confirmed Monday’s breakout. At least some testing of 4.00 is likely, regardless of the pattern’s resolution.
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Daily Spot coverage schedule is: Currencies (Mon), Metals (Tue), Energies (Wed), Rates (Thu), Weekender (Fri).