The last 24 hours have brought more consolidation than direction,
but that’s not necessarily a bad thing.
Across metals, buyers continue defending the gains achieved earlier
this week, while the dollar remains stuck in a tug-of-war between
support and resistance. What stands out is that bullish technical
structures remain largely intact despite the recent pause. In other
words: the market is resting, not necessarily reversing.
U.S. Dollar Index (DX.F)
Looking at the daily chart, we can see that the dollar once again
tested its key support zone and managed to trigger a small bounce.
However – and this is the important part – it still remains below
major resistance levels, meaning yesterday’s assessment remains
fully valid:
“(…) a closer look reveals something potentially important:
a
developing head and shoulders pattern.
At this stage, the formation remains unconfirmed. The
confirmation trigger would be a daily close below the neckline,
which in our case sits around the critical
99.18 level.
Adding to the bearish case, daily indicators continue to display
active sell signals, suggesting sellers still hold the technical
advantage.
What happens if bears manage to close the bullish gap and
activate the pattern?
The projected minimum target points toward the
98.00 area
in the coming sessions. That’s why keeping a close eye on daily
closes – and especially the 99.18 level – could be crucial for the
next major move.(…)”
Platinum (PL.F)
Platinum has also entered consolidation mode.
The metal is currently trading between Monday’s bullish gap
(1719-1730) and the nearby 38.2% Fibonacci
retracement level of the decline that started in mid-May.
The good news for bulls is that buy signals remain active, and as
long as the market stays above 1719, a breakout
higher appears to be only a matter of time.
If buyers manage to push through the top of the formation, the first
upside target should be around 1928, based on the
measured move projection from the consolidation.
Copper (HG.F)
Let’s finish with a chart we haven’t discussed for a while: copper.
From today’s perspective, buyers have two important allies on their
side – two bullish gaps. The first comes from June 12
(627.50-638.80) and the second from Monday
(644.50-651.00).
On top of that, yesterday’s session produced an
invalidation of the earlier breakdown below the black rising
support line, adding another technical point in favor of the bulls.
That said, the battle isn’t over yet.
Today’s price action shows that the market is still fighting around
that black support line, making both the support area and Monday’s
bullish gap crucial zones to watch.
As long as the gap remains open, buyers have a realistic chance of
continuing higher toward the major resistance cluster created by
recent highs (671.60-669.80) and the bearish gap
from May 14 (667.90-691.95), which is reinforced by
a bearish engulfing pattern.
A close above that resistance zone would open the door for a test of
last week’s gap. Until then, daily closes remain the key piece of
evidence.
Today’s Takeaways
For Dollar (DX.F)
-
Watch 99.18-99.85 because the market remains
trapped between support and resistance. -
Daily close below 99.18 -> activates the head
& shoulders pattern and opens the door toward
98.00. -
Break above 99.85 -> weakens the bearish case
and shifts focus back toward 100.00+. - No breakout or breakdown = expect more sideways action.
(…)
For Platinum (PL.F)
-
Watch 1719-1824 because the metal remains locked
inside consolidation. -
Hold above 1719 -> keeps buyers in control. -
Break above the upper border -> targets 1928. -
Daily close below 1719 -> weakens the bullish
setup.
(…)
For Copper (HG.F)
-
Watch 644.50-651.00 bullish gap because it
remains the key support zone. -
Hold above the gap -> favors continuation toward
662-671.50 resistance zone. -
Daily close below the gap -> weakens the bullish case and
shifts attention back to the next important support.
Stay sharp, stay patient, and don’t force trades in unclear
conditions.
Anna
Research mining stocks at Investorideas.com’s free stock
directory
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