3 Metallic Amigos weigh in amid COVID-19 scare, post-Fed mini panic

Here are the daily and weekly futures charts of the Amigos, which were live as I saved them a few minutes ago. Click for larger, clearer views.

Monetary Amigo with heavy relative counter-cyclical character

The gold price took a wallop last week but all that served to do was give it a solid test of the 50 day moving average. Various other supports are shown, with the most important being the one intersecting the SMA 200 (1486) and the major ‘breakout’ support in the mid-high 1300s.

gold

The weekly chart of the gold price shows an entry to a congestion area from the 2012 topping situation. I don’t care for that weekly RSI by the way, but MACD is good and obviously the trends are up in gold.

gold

Amigo of cyclical and monetary character

The daily chart of the silver price shows that the big drop last week finally put the 62% Fib in the books. There’s a reason I’ve been Fibbing this chart every time, and that was it.

silver

Silver weekly sports an ugly RSI and MACD thanks to the heavy selloff last week. It also reminds when silver can enter a cyclical bull as gold did last year. Silver continues to under-perform gold and until that changes, things are tough out there on the macro. One day, when silver takes up leadership you’ll have a good inkling of the next inflationary phase.

silver

Cyclical Amigo, pure industrial commodity

As we noted last weekend in NFTRH, copper has been conspicuously firm despite the fear in play due to COVID-19 and the economic deceleration it implies. The Fed is after all, on the job trying to re-flate the system. Copper remains technically bearish as it gently trends down on the daily chart. But it is in a handy little ‘W’ pattern that has its sights set on immediate resistance at around 2.60 (with the converging SMAs 50 & 200 at 2.68 and 2.66, respectively).

I like the looks of daily RSI and MACD.

copper

The weekly chart shows the ‘air gap’ that I’d have thought Doctor Copper would get sucked down into in a fear-induced deflationary squall like what is happening on the macro right now. It’s a positive divergence for said macro as long as it holds up. Copper had every excuse to tank.

copper

So there you have 3 simple messages from 3 Metallic Amigos.

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