What’s Up, What’s Down: Spotlight on Metals
Comments for August 26, 2011
Looking ahead to Friday by reflecting back on Thursday’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
SILVER, GOLD SETTLE IN REVERSAL-TYPE ACTION
FUTURES AND OPTIONS TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. FUTURES AND OPTIONS TRADING IS NOT SUITABLE FOR ALL INVESTORS.
METALS: 8/26/11 Higher closes for copper, silver, gold and platinum. Copper settled sharply higher causing a failed bear triangle while now in a strong resistance that goes up to the 420 area basis the December contract. A close over 420 could change the direction of copper unless a bottoming formation takes place and completes itself at a lower level. Either way those of you with short positions should consider to lighten up if you have multiple contracts. However, copper’s trend is still down but the volatility of the metals don’t always give you time to make a decision. Silver, gold and platinum all made their worst lows in around two weeks before settling higher in reversal type action. Although these metals are still in uptrends they’ve been hurt technically by this week’s action. Of course all of the violent movement this week has been due to the anticipation of what Bernanke will say on Friday making it difficult to take positions on either side of these metals. There is little support in silver down to the 1600 (Dec.) area and 180 (Dec.) area for gold while platinum has support around 180(Oct.) and down. Also don’t forget that platinum made a key reversal on the 23rd needing to be watched carefully especially if it doesn’t make a new contract high relatively soon! BUY SIGNALS FOR SILVER, GOLD AND PLATINUM. SELL SIGNAL FOR COPPER. CALL FOR DETAILS!
“A good plan is like a roadmap; it shows the final destination and usually the best way to get there” (H. Stanley Judd). Traders need a trading plan too. Download my TRADING PLAN TEMPLATE by clicking this link or copying and pasting it into your browser:
https://www.zaner.com/3.0/ljstradingplantemplate.asp
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.