What’s Up, What’s Down: Copper, Gold Silver Closed Higher

Comments for Thursday, June 18, 2009

Looking Ahead to Thursday by Reflecting Back on Wednesday’s Price Action


Higher close on Wednesday for soybeans, soymeal, corn and oats while lower for Minneapolis, Kansas City and Chicago wheat along with rough rice. All of the wheat continue to look weak but Chicago is now in a support area after making its lowest low and close since May 5th. Corn broke down through 400 basis the July contract but did manage to rally back and close at 407 3/4. There is strong resistance over 420.

A failed bull triangle on the 12th really put a damper on corn which was struggling to keep up with the beans at that time. Rough rice settled lower for the 4th trading session in a row now in a support area and roughly in a trading range between 12000 and 13000 basis the July contract. Its long term trend is down but has been holding since the beginning February. Oats made its lowest low since May 5th bouncing off a very strong support area and rallying to settle higher but still has topped out. The beans and oil closed higher while meal settled lower. Beans and meal are still in uptrends while the oil has topped out and is still in a bear triangle.

Soybean Oil Futures Chart


Higher closes yesterday for the Nasdaq while lower closes for the cash and Dow futures along with the S&P’s. All of the indices continue to be in uptrends overall but all had their lowest lows and closes in two weeks except for the Nasdaq which did settle higher after making a recent low first. Also the Dow and S&P’s are in support areas at this time.

S&P Futures Chart


We saw higher settlements posted for live and feeder cattle along with lean hogs while lower for pork bellies this time. Cattle bounced off its double bottom in the August contract rallying to settle 100 points higher and now has a triple bottom. Now if the cattle can close over 8215 we might see a bottom in place! Feeders also settled higher and I should continue to rally off my buy signal. Hogs closed higher but are still very weak overall while bellies settled lower also in a downtrend. I am maintaining Buy Signals for Feeder Cattle and Sell Signals for Live cattle and Bellies. Please contact me for details.

Live Cattle Futures Chart


Higher closes for copper, gold and silver while lower for platinum. Copper made a recent low before closing higher still in a long term uptrend but looking toppy at this time. Also, the 22500 area (July) is important to hold in my opinion. Gold settled higher but is still in a small bear flag and should continue lower overall. followed through lower again but now in a support area. Silver also settled slightly higher after making its lowest low in month still needing to hold the all important 14000 area (July). It’s also forming a possible large top. Platinum settled lower and is starting to look toppy but still in a long term bull market at this time.

Gold Futures Chart

See the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.

Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.