------------------------------------------------------------------------------------------------
We have another interesting scenario developing in the DEC GOLD contract this week. The daily chart is tracing out a potential HEAD & SHOULDERS bottom that could translate into a vigorous rally in the metals complex over the next few weeks. The low on 9/14 of 576.60 should provide the necessary support if this pattern holds true. A test of that area and then a gradual turn higher would complete the pattern allowing DEC GOLD to finally break through overhead resistance at the 50-day MA currently at 604.60. Should this occur the stage would be set for a rally back to the $650 level in the near-term. SILVER would likely follow Gold's path as it has consistently held the 10.55-10.60 area since mid-July.
Copper continues to trade sideways and further weakness will likely be seen with support coming in near the 3.20 area. If the market were to break this area of support then a retest of the June lows below 3.00 would become a strong possibility.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
No comments:
Post a Comment