Precious Metals: A "Do or Die" Trendline Frenzy
Gold Futures (GC)
Gold futures found itself in dangerous territory during the 12/05 session as price temporarily broke below 1,267 – a key support level from the last two swing lows on 10/6 and 10/27. After closing at 1,268.40, GC became the trendline chart of the day, with price sitting just above support trendlines on both the short and long-term. After chopping around in a sideways channel for the past two months, GC futures may be primed for a breakdown with a clear-cut downside target of 1,215.
Silver Futures (SI)
Silver futures continued to sell-off for its 6th consecutive losing session, swiftly breaking down below its previous two major swing lows at 16.444 (10/09) and of 16.282 (08/07). The short-term technical profile has become very bearish, with SI 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 back up towards 16.50-17.00, it's more likely that silver futures will move towards the next level of major support down at 15.55.
Platinum Futures (PL)
Platinum futures dropped for the third straight session, before finding support at the key trendline connecting the last two major swing 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 its sideways channel, or if it confirms the Super DMI™ bearish crossover and heads lower to test long-term support at 895-905. Price 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)
Copper futures were obliterated, suffering its largest loss in a single session since 12/14/11. While price will likely continue lower over the course of the week, extremely strong support at 2.906 should provide a bounce back up towards 3.05 if copper has some fight in it. If not, it may only delay an inevitable move down towards long-term support at 2.55 now that price has confirmed the Super DMI™ bearish crossover.