day trade ideas – silver, copper & sugar – 08/08/13

Silver made it to the upper target of 20.30 & topped at 20.35. Immediate support is 20.05 but below here we could test 19.90. Watch for a break below 19.75 as we could then test support at 19.62.

20.30/35 resistance again today but a break higher cannot be ruled out as we trend sideways & could target July highs at 20.60/61.

Copper broke the 100 day moving average at 323.96 as expected & just fell short of the 328.50 target. We have got overbought in the short term now so the topside should be more limited. We should struggle up to 328.50 with strong Fibonacci resistance just above at 329.25. Use this area as a selling opportunity with stops above 331.

Immediate support is 322.25 & a low for the day is possible here. However, if we continue lower look for a buying opportunity at 319/318.65 with stops below 317.40.

Sugar #11 in a bear market now for at least 2 years but over the last 3 weeks it has staged a small recovery. This is only a bounce in a bear trend but there is a more bullish pattern forming which could see prices drive higher in the next 2-3 months. This week we bottomed at 16.51 & as long as this holds we could test the neck line to an inverse head & shoulders pattern at 107.00/02. This area also coincides with the 100 day moving average adding to the significance.

A close above this level in the days to come confirms the bullish inverse head & shoulders pattern & ultimately targets 18.00/18.25.

Short term levels to watch are support at 16.65 then 16.51. A break lower could target 16.37 & a buying opportunity with stops below 16.28.