Comments for December 8, 2011
Looking ahead to Thursday by reflecting back on Wednesday’s trading
Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors
METAL FUTURES CHARACTERIZED BY NARROW TRADING RANGES
METALS: 12/8/11 Higher closes for gold while lower for copper, silver and platinum. The metals have had narrower ranges than they’ve normally had over the last week. Still, copper has been trading between 3000 and 3750 since late September while still in a long-term downtrend overall but had held a strong support area recently before rallying to its present level and chopping around over the last week of trading. Also, copper could be forming a huge potential bottom but even that is flattening out. In my opinion a close over 3750 breaking out of its range is necessary to move higher again. On the other hand a close below 3000 could lead to a continuation of its downtrend. Therefore, I’m standing aside for now. Silver settled lower and gold higher but no changes technically that I can see. While silver has been in a downtrend since August, it has also been in a trading range between 3000 and 3500 since late September putting me on the sidelines until I see a breakout in either direction or a different technical formation. Also, there is good support just underneath and good resistance right overhead. Gold has been moving higher since late September while now in a resistance area also making it difficult for me to take a postion near both resistance and support areas.Platinum continues to fade after briefly retracing at the end of November acting like it will test its lows from early October. The 1500 area is very critical to hold in my opinion. SELL SIGNALS PLATINUM. CALL FOR DETAILS!
Follow more Grain market related stories and commentary at my Metal Futures blog (www.metalfuturesupdate.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. Email Rick at ralexander@zaner.com or call toll-free (888) 281-4158.
Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors. The information in this Report and the opinions expressed are subject to change without notice. All known news and events have already been factored into the price of the underlying commodities discussed.
