Key Levels to Watch! The Metals Minute w/ Phil Streible
It’s Monday, October 30th, about 6 a.m. Central Time. Overnight, the precious metals are higher after Friday’s technical breakout. You have December gold up $7 at 2005, December silver up $0.43, 2333. Summer Copper up four at 3.69 and January Platinum up 20 at 926. So last week here, we did have a lot of underinvestment, in my opinion, in the precious metals markets, although they have been continuously attracting new speculators in those markets.
So also a couple other things we’re watching. Power cuts in South Africa, I really believe, is what gave a boost to the platinum contract overnight that Eskom announced that they would be throttling down some of the electricity, rolling some different blackouts in some power. They try and conserve some of the power by shutting things down. And that’s what really put the boost on the platinum market overnight.
So there’s not a lot of things coming out here today. Wednesday and Friday are your key days. On Wednesday, we do have the Fed. We also have the Treasury buyback in the ADP. Friday’s going to be your jobs report that comes out. So we’re going to want to monitor those. So it’s employment heavy week and it is also about a 1% chance that they expect the Federal Reserve to take any kind of action.
They think that they’ll pause right here. I think they might be completely done. So we’ll see what happens. We haven’t had that sustained rally and many of these commodities, they’ve really come back quite a bit like your grain markets have all pulled back. Your crude oil doesn’t have the punch that it had before. You would think that crude oil prices would be a lot higher giving the conflict in the Middle East.
Now, looking at the technicals on the gold market, it is bullish. You’re really going to want to look and see a breakout over Friday’s height in order to get any kind of sustained continuation on this rally, because the chart pattern is a gap higher and it’s starting to sell off on there. That type of chart pattern on the a candlestick, it’s going to be like a gravestone.
So not a good thing here for the bulls, especially if you’re buying that kind of breakout at the moment. You want to see a continuation. You want to see it go back on up, up there. So the resistance point, Friday’s highs your support psychological 2000 below, that’s going to be the 200 day moving average 1983 below. That would be 1950.
That’s another psychological number. And the 1933 will be your other one year trend reversal points way down in 1912. So that’s too much slack to give it, in my opinion. Looking at the silver market, it is neutral to levels to watch here. We would need to see a close over 2340 in order for some momentum indicators and also some of these trend following systems for them to flip on the bullish side.
Your major support levels here, I think, are closer to that. You know, 23, 21, that’s the 50 day moving average, 2390, that’s your 200 day moving average as a resistance point and then way below that in order for the flip to bear back to a bearish trend, you don’t want to see this if you are a bull 2212 if it breaks there, it’s probably going to run back down into those lows.
Looking at the outside markets here, we’re mixed. You got the S&P 500 up 26 points, 4164. Big sell off on Friday. So this is going to be a bit of short covering here in monitoring if there’s any escalation overseas. The dollar index is down seven ticks here, 106 31. Your ten year Treasury yields are up four at 4.8 and then crude oil down a dollar at 8455.
So that’s interesting as well. Do you have any questions on futures options trading? Give me a call. 312858733. Remember, futures and options trading does involve risk. Loss may not be suitable to investors. Good luck and good trading.