The DEC Copper contract finally broke and closed above that magical $2.00 level yesterday. Here are my comments that were transmitted to Myra P. Saefong, Financial Writer for Marketwatch.com. this morning:
Tuesday's Metals Comments:
With a slew of economic data set for release this morning traders may see volatility rise dramatically as some key resistance levels are being tested in the Precious metals markets. DEC GOLD broke through the $500 mark in overnight trading only to get a nosebleed and turn lower. This may only be a temporary setback on this first attempt to close above key resistance but traders will be watching the numbers set for release at 8:30 EST to determine which side of the market they want to be on for the short-term. While the short-term ride may get a little bumpy there's no denying that the Precious metals complex remains in a long-term bull market and significantly higher prices are on the horizon.
Silver has one last hurdle to overcome before it kicks into high gear and sprints to the $10.00 level. Once the weekly chart resistance at $8.50 is cleared this market could explode to the upside. I have been extremely bullish on this market as it has lagged Gold's performance for quite some time. The tide may have turned and I look for Silver to make up ground quickly.
Copper is now in never, never land as it reacts to prices above the $2.00 mark. As I've been saying for what seems like forever, this market was destined to crack $2.00 and, now that it has accomplished this feat, it will be interesting to see whether the trend in Copper can continue as it has for the last 4 years. The trend is your friend until it comes to an end. For now, there seems to be no end to the major trend in Copper.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
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