The following was emailed to Myra P. Saefong, Financial Writer at Marketwatch.com, at 8:50 AM EST.
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The new month finds the metals complex starting off rather quietly as the "tug-o-war" continues between support and resistance and neither side able to gain the upper hand. There's little reason to be overly concerned about any major retracement but there's also little evidence that the market will break out to new highs anytime soon either. Traders' patience will likely be tested over the next several weeks and one side will finally cry "uncle". I believe that the long-term trend remains intact in all of the metals markets but we may have to experience a longer than normal consolidation period before the markets are finally able to see some fresh buying which would put the markets back on track for new contract highs. In the meantime, we'll probably see volatility rise with lots of stops being hit in the near term. Nothing aggravates long-term traders more than churning markets but, for the scalpers, it's like taking candy from a baby.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
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