Precious Metal Futures’ Trendline Frenzy: Are Gold, Silver, Platinum, and Copper About to Die?

Gold Futures (GC)

Gold futures found itself in dangerous waters during the 12/05 session as GC price action temporarily broke below 1,267 – a key support level from gold’s last two swing lows on 10/6 and 10/27.  After closing at 1,268.40, GC became the chart of the day, with price sitting just above support trendlines on both the short and long-term.  Having tread water in place by chopping around in a sideways price channel for the past two months, GC futures need to bounce immediately or may begin a lengthy plunge with a clear-cut downside drowning target of 1,215.

Silver Futures (SI)

Silver futures continued to sell-off for the 6th consecutive losing session; swiftly breaking down below two previous major swing lows at 16.444 (10/09) and 16.282 (08/07).  SI’s short-term technical profile has become very bearish, with silver futures floating around in ‘no man’s land’ without any meaningful support levels in sight.  While a small bounce may cool-off the current sell-off – and attempt to push ‘poor man’s gold’ prices back up into 16.50-17.00 – what’s more likely is that silver futures will gravitate towards their next major support levels.  If so, SI will be magnetically drawn down to 15.55 like Magneto lazily beckoning for a spoon. 

Platinum Futures (PL)

Platinum futures dropped for the third straight session, before finding support at the key trendline connecting the last two major swings at 895.40 (07/11) and of 906.50 (10/06).  The next few sessions will likely determine whether platinum bounces back up towards 960 and remains in a sideways price channel, or if it confirms the Super DMI™ bearish crossover and heads even lower to test long-term support at 895-905.  Price action will see a strong bounce at those levels, but a break below 895 means that 830-870 is where PL futures will be heading in early 2018.

Copper Futures (HG)

Dr. Copper’s technicals are the only thing we would dare think to possibly know better than Gundlach; well, maybe how to handle frustartion with a pathetically hollow fourth estate of mainstream media and maybe haircuts, but we digress and absolutely adore the art-loving Buffalo Bill suffering true Bond King.

Copper futures were simply obliterated, suffering their largest loss in a single session since 12/14/11.  If price continue to head lower over the course of this week, extremely strong support at 2.906 should provide a well-bid bounce back up towards 3.05.  If not, Copper may only delay an inevitable move down towards long-term support at 2.55 now that price has confirmed the Super DMI™ bearish crossover.

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