Silver hit our next target & strong resistance at 1700/10

Daily Forecast - 10 December 2014

Silver Futures December contract

Silver hit our next target & strong resistance at 1700/10. A high for the day was expected to try shorts with a stop above 1730. We can try this again today but be ready to go with an unexpected break higher with 1710/00 then likely to act as good support for a move to 1760/65 and perhaps as far as strong resistance at 1782/88 this week.

Failure to beat 1730 as hoped keeps us short for a move back to 1685/80 below here adds pressure to target 1665 then good support at 1655/50. We need to exit any remaining shorts here and try longs with stops below 1625. On a break lower however we should then target 1605.

Gold February Contract

Gold beat 3 month trend line resistance at 1221 to hit our target & strong resistance at 1236/38. We topped almost exactly here at 1239. Again today there is a chance we will top out here, as we become overbought in several time frames but shorts need a stop above 1244. Be ready to go with a break higher using 1239 as good support for a move up to 1250 and perhaps even a retest of October highs at 1255. Any further gains this week meet strong resistance at 1261/1264 for a very good selling opportunity.

1228/27 is first support today then the December 1st high of 1221 but below here look for a very good buying opportunity at 1216/15. A low for the day is expected but longs need a stop below 1210.

S&P December contract

Emini S&P tested support at 2042/41 for longs with stops below 2035. Unfortunately prices bottomed just above 2033 but if longs were held we saw a bounce to resistance at 2058 to try shorts with stops above 2063. A break above 2063 today targets 2068/69 & perhaps as far as a retest of 2077/79 all time highs.

Failure to beat 2063 keeps the market under pressure for 2054/51. If we continue lower look for 2048 then good support at 2042/41. However a break lower today tests strong support at 2033/30. Try longs with stops below 2027. Any further losses this week risks a slide as far as 2020/18.

E Mini Nasdaq December contract

E-Mini Nasdaq needs to hold on above 4275 and beat 4295 to target resistance at 4320/25. Above here we meet November highs at 4348 and there is a good chance that this will hold a move higher this week.

Below 4275 keeps the market under short-term pressure to target 4255/52. Failure here however could lead to retest of yesterday's low and trendline support at 4221/4217. There is a very good chance of a bounce from here but if we continue lower look for excellent support and a buying opportunity at 4195/92. Longs need stops below 4175. If we continue lower look for 4166/62 then good support at 4145/42.

Emini Dow Jones December contract

Emini Dow Jones will need to hold above 17,770 to continue the recovery. Immediate resistance at 17,790/17,800 but above here is more positive and can target 17,860/870. We should struggle here and a high for the day is certainly possible but shorts need a stop above 17,895. Be ready to go with a break higher then to target 17,925/930 and 17,950/960. Above here of course we run into the all-time highs at 17,980.

Failure to beat 17,800 keeps the market under short-term pressure. Below 17,770 adds pressure to target 17,735/730. If we continue lower again today, look for 17,705/700 before good support at 17,670/660. There is a good chance of a bounce from here but longs need a stop below yesterday's low of 17,623. On a break lower however we should target 17590/580 then 17560/555 & possibly 17520/10 before a buying opportunity at 17480/470.