3 Metallic Amigos, Trade and the Headlines of the Day

Doctor Copper, the cyclical metal with an Economics Ph.D., failed the big macro signal area at 3 and has dropped since mid-April. But now with trade tensions easing it has held support and this morning is making a move. The key area for Doc is the SMA 200 at 2.77 (with the SMA 50 declining to meet it). Meanwhile, RSI is already peppy and MACD is crossed up. The major trend is still down (w/ the SMA 200). Clear 2.77 and we can talk bull.

copper

Meanwhile the other metal with a Ph.D. from a more counter-cyclical perspective got too peppy amid the trade hysterics and Fed obsessions and is getting bonked down from resistance after inching out the slightest of higher highs. Technically, the now up-turning SMA 200 is a positive and it is also support, with more support above at 1300 (and the SMA 50). You can see RSI had gotten overbought and that is being addressed now. Gold is in a bear market below 1378 and would enter a bull above it, so the approach to that massive resistance area was bound to get volatile. Don’t personalize it.

gold

Silver was trumpeted as having broken through the moving averages by none other than your friendly blogger here. And so dear silver bugs, my apologies for highlighting that. The market Godz have summarily reversed it as it also got too peppy. To be bullish again silver’s task is obvious; re-take those moving averages.

silver

Meanwhile, I found this headline and those below it interesting. The subject of the article (access by clicking the graphic) takes the view that with all the large speculative interests that pile drove into gold (with Commercials taking the opposite trade) amid the latest trade war headlines, the gold price is vulnerable. And you know what? I agree with him. The CoT data have not been favorable. A reaction was in the bag the whole time.

As for the little headlines below the big one, with their negativity they don’t seem to imply that the rally is over and sure enough stocks are as green on the futures as gold is red.

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