What’s Up, What’s Down: Spotlight on Metals

Comments for January 25, 2011

Looking ahead to Tuesday by reflecting back on Monday’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.

Will Platinum lead the way for the other metals?

[Special Note: Cotton futures daily price limit will be 6 cents for Tuesday, January 25, 2011]

METALS: 1/25/11: Higher for copper and gold while lower for silver and platinum. Although copper has been making lower lows and highs since the beginning of January its overall trend is still higher. It’s important in my opinion that the March contract holds the 42500 area. Silver made its lowest low and close since November 29th and gold its lowest low since November 3rd before rallying to settle higher in reversal type action. Silver has actually struggled since December and gold since November even with making new contract highs along the way. Both these markets have acted overbought for a while helped along by the public being basically long in my opinion. I look for very volatile markets to continue but the overtrend to be down for a while. Platinum settled lower but is still in a BULL FLAG in my opinion leading the way for the metals. SIGNALS FOR COPPER AND PLATINUM. SELL SIGNALS FOR SILVER AND GOLD.CALL FOR DETAILS!

001 chart

002 chart

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.