Gold Futures
Gold futures in the June contract settled last Friday in New York at 1,287 an ounce while currently trading at 1,279 down about $8 for the week ending on a sour note. I had been recommending a bullish position from around the 1,301 level as it is time to exit and move on as prices hit a two week low experiencing another false breakout. Gold prices hit a five-week high earlier in the week looking to break out, however, then the stock market stabilized as it generally does throughout history sending money flows back into equities and out of the metals. The U.S dollar is hovering near a two year high as I have a bullish position in that currency as that also has put pressure on gold prices which now look to test the major support around the 1,267 area so sit on the sidelines and let's wait for another trend to develop. Silver prices are hitting a five-month low today, and that is also putting pressure on gold as I also have a bearish copper recommendation which continues to drip lower weekly as the commodity markets, in general, remain weak. Gold prices are now trading under their 20 and 100-day moving average as the trend has turned south, however for the real breakout to occur we have to break the May 2nd low of 1,267 and if that does happen, expect lower prices ahead.
TREND: LOWER
CHART STRUCTURE: EXCELLENT
VOLATILITY: AVERAGE
Copper Futures
Copper futures in the July contract are currently trading at 2.7715 after settling last Friday in New York at 2.7375 a pound continuing its bearish momentum as the whole precious metal sector looks weak in my opinion. I have been recommending a bearish position from around the 2.8240 level, and if you took that trade the stop loss has now been lowered to 2.8410 and then in Tuesday's trade will drop all the way down to 2.8100 as the chart structure will improve daily. Copper prices are trading far below their 20 and 100-day moving average as the trend is lower, however for the bearish momentum to continue we have to break the May 13th low of 2.7090 in my opinion as I will possibly be looking at adding more contracts to the downside. The U.S dollar is right near a two year high as I also have a bullish recommendation in that currency as that is also putting pressure on copper and most of the commodity sectors. The volatility is high as that should remain that way throughout the summer months as historically speaking copper can have crazy daily price swings with high risk so stay short.
TREND: LOWER
CHART STRUCTURE: EXCELLENT
VOLATILITY: HIGH
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