Copper & Precious Metals At Power Short Areas

Copper futures recently broke down and completed a descending triangle top. Additionally, the market is near its short-term SR resistance level. Long-term monthly based SR Support for COMEX Copper is currently at the 240 area.


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Long-term monthly based SR Support for COMEX Copper is currently at the 240 area.
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Copper futures recently broke down and completed at descending triangle top. Additionally, the market is near its short-term SR resistance level.
NOTE: This chart was produced on Wednesday June 21 after the close. SR resistance for tonight/tomorrow session is 318.20.
Downside projections for the next leg is 230 area.
Look to sell short at 318.20 with a stop around the 325 area. If stopped out initiate next short at 329.00 area which is below heavy resistance. Downside Fibonacci projections would not change.
Due to a number of option trades that we have given to our clients I can’t give any specific recommendations. However, there are some dynamite opportunities if you know how to capitalize on Vega and IV skews.
Precious Metals Sector
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Silver
Silver and gold, like copper, are also near key short-term SR resistance levels. While the opportunity isn’t nearly as good as what is being presented in copper nonetheless they are some really good trades to be found. For example,
Buy 1 Sep. 10.50 Put. Closed Today at – 0.628 ($3,140.00)
Sell 2 Sep 9.50 Puts. Closed Today at – 0.223 ($1,1150.00)
The next cost on this is about $1000.00 with maximum profit potential at $5,000.
At expiration the breakeven on this trade is at 8.70. There is MAJOR support for silver around the 9.50 area as determined via monthly SR support and other technical methods.
Paul Skarp
www.aarontrade.com
Commodity Futures Weblog – www.aarontrade.com/commodityfuturestrading

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