FEBRUARY GOLD

February gold closed higher due to short covering on Monday but remains below the 10-day moving average crossing at 1109.00. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are oversold and are turning bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing at 1137.40 are needed to confirm that a short-term low has been posted. If February renews this month's decline, the 38% retracement level of this year's rally crossing at 1032.60 is the next downside target. First resistance is the 10-day moving average crossing at 1109.00. Second resistance is the 20-day moving average crossing at 1137.40. First support is last Tuesday's low crossing at 1075.20. Second support is the 38% retracement level of this year's rally crossing at 1032.60.

Source: VantagePoint Intermarket Analysis Software

MARCH SILVER

March silver closed higher due to short covering on Monday while extending this month's trading range. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are oversold, diverging and are turning bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing at 17.779 are needed to confirm that a short-term low has been posted. If March renews this month's decline, the reaction low crossing at 16.155 is the next downside target. First resistance is the 20-day moving average crossing at 17.779. Second resistance is this month's high crossing at 19.500. First support is last Tuesday's low crossing at 16.780. Second support is the reaction low
crossing at 16.155.

MARCH COPPER

March copper closed higher on Monday as it extends last Thursday's rally and posted a new high for the year. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If March extends today's rally, the 87% retracement level of the 2008-decline crossing at 347.94 is the next upside target. Closes below the 20-day moving average crossing at 318.82 are needed to confirm that a short-term top has been posted. First resistance is today's high crossing at 334.40. Second resistance is the 87% retracement level of the 2008-decline crossing at 347.94. First support is the 20-day moving average crossing at 318.82. Second support is the reaction low crossing at 308.15.

Jim Wyckoff
TradingEducation.com