Silver and copper sharply higher on short covering and a weaker doller
CHICAGO (Aug 8) September silver futures prices closed nearer the session high Thursday and closed at a two-week high close. Bears still have the near-term technical advantage. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the July high of $20.595 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $19.00. First resistance is seen at Thursday’s high of $20.30 and then at $20.595. Next support is seen at $19.75 and then at Thursday’s low of $19.455. Wyckoff's Market Rating: 3.0.
September N.Y. copper closed up 965 points at 326.95 cents Thursday. Prices closed nearer the session high and hit a fresh six-week high on heavy short covering and bargain hunting following the strong economic data out of China. Price action Thursday also saw a bullish upside “breakout” from a choppy trading range on the daily bar chart. Copper bulls now have the overall near-term technical advantage. The U.S. dollar index was weaker again Thursday and hit another six-week low overnight. The greenback bears have the overall near-term chart advantage, which is an underlying bullish factor for the precious metals markets. Meantime, Nymex crude oil futures prices were solidly lower Thursday. The crude oil bulls have faded this week and a bearish double-top reversal pattern has formed on the daily bar chart.