Market Insights – February 18, 2015

Sitting in while Roy Friedman is out for two weeks, is Peter Aan, a Dillon Gage Metals Trader. Here are his Market insights:

Gold tumbled Tuesday as fears over the situation in Greece eased, negating the attempted rally from last week. This took gold to the lowest level since early January, bumping it against the lower Bollinger Band, an oversold condition. Support continues to be at the January low of 1168.3 (basis the April contract).

Silver had made a more convincing rally as last week ended, but it, too, succumbed to selling on Tuesday, taking it to the lowest level since early January and reaching an oversold condition on the Bollinger Bands. Prices stabilized Tuesday night and early today. Now that the recent lows have been penetrated, we turn our attention to the next support level, the significant bottoms formed in the latter half of December in January 2 at 15.510 to 15.540 (basis March). This is not to say that it will move to that level, only that there is no major chart support between here and there.

Platinum, having failed to close above the February high of 1214.10 (basis April), attracted enough sellers to plunge it through the January 2 low mentioned previously. This is important because it puts platinum at the lowest level since 2009, when it was climbing from the sub-800 low reached in 2008 to the 1900 plus high reached in 2011.

Palladium fell back on Tuesday, but its range was entirely within Friday’s range (due to the holiday, the trading from Sunday night, Monday morning and Tuesday through 4:15 CST was all folded into one “day”). This market remains in a trading range, with resistance at the 795.0 to 799.0 area (basis March), and support at levels previously discussed: 763.60, 758.0, and more important support at the January low of 746.0.

Peter Aan joined Dillon Gage in 1983, and is currently a metals trader for their metals division. He is the author of numerous articles for Futures magazine and Stocks and Commodities magazine. He is the author of The Relative Strength Index: A Comprehensive Research Report and a co-author of Trading Tactics: A Livestock Futures Anthology, published by the Chicago Mercantile Exchange.