SILVER DAILY
Price structure:
The Daily chart of Silver highlights the strong momentum move higher from the down trendline breakout. Last Friday’s rejection candle (shooting star) is a clear rejection of the previous high at $24.90. This week may see further profit-taking; however, a breakout higher again would be a VERY bullish signal for the retest of $25.52 and higher. Silver has set a corrective move higher in a downtrend, for a trend to be confirmed a retracement must take place before a 2nd move higher.
Indicator: Relative Strength 14
Current Relative Strength is now viewed as strong bullish, as the reading moves over the 50 level and heads into the 70 level.
Comments from last week: Silver has moved outside of the down trend line from the June 2021 highs. Last Friday’s low retest the trendline and saw silver trade higher off the low into the close. (A very different picture to the Gold price.) The underlying Primary price trend for Silver is down, the move into the close of last week could be a strong signal for overall trend reversal, $25.52 remains the first resistance level to test.
COPPER DAILY
Price structure:
The Gap open from the Friday close to the Monday open has met with immediate selling, last weeks comments mentioned the risk of selling following a euphoric price move. The price moving back to test the $4.50 level has set a Dark Cloud price structure and the commodity may see further selling in the coming week. Further price weakness may retest the key $4.33 level. The whole price structure January 2021 is consolidation between $4.00 and the current 2nd retest of the all-time high of $4.80
Indicator: Relative Strength 14
The sharp turn lower in the RSI a reflection of the sharp price movement is not a good signal for further momentum gains. The key, for now, is the RSI remains above the 50 levels as a reflection of ongoing and positive underlying price momentum
Comments from last week: The strongest of the commodity moves last week. Copper also set the strongest price range bar in many years. However, the Weekly gap open over $4.33 is of concern, this might be a euphoric move and may see profit-taking in the first days of this week. If any retracement takes place $4.33 remains as the key support level. Australian producers OZL, MIN, BHP, will benefit in the coming week.
