Gold Bulls Fading this Week
Friday, October 26th, 2012PRECIOUS METALS
December gold closed higher due to short covering on Thursday as it consolidates
some of this month’s decline. The high-range close sets the stage for a steady to
higher opening when Friday’s night session begins trading. Stochastics and the RSI
are bearish signaling that sideways to lower prices are possible near-term. If
December extends this month’s decline, the 50% retracement level of the May-
October rally crossing at 1667.00 is the next downside target. Closes above the 20-
day moving average crossing at 1754.10 are needed to confirm that a short-term
low has been posted. First resistance is the 10-day moving average crossing at
1731.60.
Second resistance is the 20-day moving average crossing at 1754.10. First support is
Wednesday’s low crossing at 1698.70. Second support is the 50% retracement level
of the May-October rally crossing at 1667.00.
December silver closed higher due to short covering on Thursday as it consolidates
some of this month’s decline. The high-range close set the stage for a steady to
higher opening when Friday’s night session begins trading. Stochastics and the RSI
are oversold but remain neutral to bearish signaling that sideways to lower prices are
possible near-term. If December extends this month’s decline, the 50% retracement
level of the June-October rally crossing at 30.850 is the next downside target. Closes
above the 20-day moving average crossing at 33.507 would signal that a short-term
low has been posted. First resistance is the 10-day moving average crossing at
32.537. Second resistance is the 20-day moving average crossing at 33.506.
First support is Wednesday’s low crossing at 31.535. Second support is the 50%
retracement level of the June-October rally crossing at 30.850.
December copper closed lower on Thursday as it consolidates above the 50%
retracement level of the June-September rally crossing at 355.15. The low-range
close sets the stage for a steady to lower opening when Friday’s night session begins
trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling
that sideways to lower prices are possible near-term. If December extends this
month’s decline, the 62% retracement level of the June-September rally crossing at
348.30 is the next downside target. Closes above the 20-day moving average
crossing at 370.73 would confirm that a short-term low has been posted. First
resistance is the 10-day moving average crossing at 365.49. Second resistance is
the 20-day moving average crossing at 370.73. First support is the 50% retracement
level of the June-September rally crossing at 355.15. Second support is the 62%
retracement level of the June-September rally crossing at 348.30.
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