The following comments were sent to Myra P. Saefong, Financial Writer for Marketwatch.com, at 8:02 AM EST.
___________________________________________________________________
The Precious metals complex has been on a tear right from the New year's opening day but it finally looks like we're in for a little bit of profit taking and a necessary retracement. It's always hard to guage exactly when a particular market will begin a normal retracement and, with the recent strength in the metals, making that call can be dangerous. The overall market trends remain intact but I won't be surprised to see a move in APR GOLD down to the 50-day MA (537.40) which is very strong chart support. This would put the market back in oversold territory while forcing the majority of small specs out of the market in the interim. This would probably set up the next leg that would finally see Gold testing that $600 resistance level.
MAR Silver has strong support at its 50-day MA which lies just above the $9.00 level and Copper, well, Copper is another story altogether. I've said many times that I believe Copper will continue to lead all of the metals, precious or base, and it continues to prove me right. Copper will most likely eclipse $3.00 before the market experiences any significant pullback. The fundamentals, technicals, and sentiment are all aligned for Copper and this market should continue to make new contract highs.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
No comments:
Post a Comment