December gold futures closed down $10.30 at $1,392.90 yesterday, and extended losses in after-hours trading. Prices closed near the session low yesterday after hitting another all-time record high of $1,424.30 an ounce early on. Some late, volatile trading and profit-taking pressure hit the gold market in after-hours trading, as the U.S. dollar index posted a solid rebound after being under pressure earlier in the session. Price action yesterday scored a bearish "key reversal" down in gold, which is one early technical clue of a market top being in place. Gold bulls do still have the overall near-term and longer-term technical advantage. A 3.5-month-old uptrend on the daily bar chart is still in place. Bulls' next near-term upside technical objective is to produce a close above technical resistance at yesterday's all-time high of $1,424.30. Bears' next near-term downside price objective is closing prices below solid technical support at $1,366.00. First resistance is seen at $1,400.00 and then at $1,410.00. Support is seen at yesterday's low of $1,382.20 and then at $1,372.00.
December silver futures closed the day session up 23.3 cents at $27.66 an ounce yesterday. However, prices sold off sharply late in after-hours trading when the CME raised sharply silver futures margin requirements. Prices closed session near the session low yesterday and saw late profit taking after hitting another fresh contract and 30-year high early on. Prices also scored a bearish "key reversal" down on the daily chart late Tuesday. That is one early clue of a near-term market top being in place. Also, there could be a major near-term "exhaustion tail" forming in silver, but it's too early to tell. I'll update this potential bearish development on Wednesday. Silver bulls still have the overall near-term technical advantage. However, the market was well short-term overbought, technically, and due for a corrective pullback. Prices are still in a 3.5-month-old uptrend on the daily bar chart. The next downside price objective for the bears is closing prices below solid technical support at $25.00. Bulls' next upside price objective is producing a close above solid technical resistance at yesterday's high of $29.34 an ounce. First resistance is seen at $27.50 and then at $28.00. Next support is seen at Tuesday's low of $26.415 and then at $26.00.
Wyckoff's Market Rating: 7.0.
December N.Y. copper closed up 465 points at 400.30 cents yesterday. Prices closed nearer the session high yesterday and hit a fresh two-year high. The copper bulls have the solid overall near-term technical advantage and gained more power yesterday by pushing prices above major psychological resistance at $4.00 a pound. Prices are in a five-month-old uptrend on the daily bar chart. Bulls' next upside objective is pushing and closing prices above major psychological resistance at 425.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 380.00 cents. First resistance is seen at yesterday's high of 404.75 cents and then at 407.50 cents. First support is seen at 400.00 cents and then at 395.00 cents.
