Stated previously last week, the failure to accelerate above 1360 and subsequent retracement back into last week's range gave us concern. Friday's action only exacerbated that anxiety. The technicals say range bound. We hope that is true as macro bulls in the Precious metals Complex. But we can't help but feel that a 1320 print if it happens will not be the support the technical report and the chart bottom from mid to late July would imply. Today's call is only marginally lower- Soren K.
DEC GOLD Resist: 135010, 135940*, 136360 ST Trend: Sdwys(134170) Support: 133980*-, 1324- Obj: None TRP: 1359.40Comment: Trade remains caught between 133980* support and 135940* resistance. A close over 135940* rekindles bull trend forces to again reach for 138060*. A close under 133980* implies selloffs to 1324-1320. Once again the rejection from over 135940* favors a turn lower.
interactive chart HERE
From Thursday, and the source of our concern: RECAP: How to trade Gold today
SEP SILVER Resist: 2041*, 20515 ST Trend: Sdwys(1972) Supprt: 19895*, 19605, 1918* Obj: None TRP: 2041.0Comment: Last week’s stall against 2041* resistance is prompting a preliminary turn lower. Trade is poised for selloffs. A penetration under last week’s low implies a drop to 1918* support. A close over 2041* rekindles bull trend forces to again reach for 2100+.
Soybeans may be Bottoming: Grain analyst
SEP COPPER Resist: 21610, 21945, 22235* ST Trend: Sdwys/Down(21365) Supprt: 212-210 Obj: 21200- TRP: 222.35Comment: The trend is down and Friday’s break reveres the near term upturn mid last week. Trade is poised for selloffs down into the 212-210 zone. A close under 209 is bearish. Any corrections should remain contained inside Friday’s range if bear forces have control. A close over 22235* is needed to reverse the trend back up.
Finally: a break back into the range of the Brexit rally if it occurred could seem to be a total negation of the whole reason to own Gold. Why own it as a hedge if it does not hold onto gains while the whole UK/EU/YEN issue is not resolved right? Acknowledging that concept, it would be our position that the Central Bankers have done a good job into again lulling the public and investors into thinking all is well. That QE and helicopter stimulus will solve all. That may be so if you are a trader focused on the next 2 to 20 days. But at some point the negative consequences unintended as they may be will outstrip the desired results of every move towards financial oblivion the global economy is being pushed. You should be long stocks. Just hold onto your inflationary hedges adn hope that the CB people do not violate the last mathematical law left: dividing by zero and somehow getting a positive number.
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