Commodity Levels for 10-10-08

December gold was higher overnight and spiked above resistance marked by September's high crossing at 878.00. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If December extends the rally off September's low, the 75% retracement level of the July-September decline crossing at 970.90 is the next upside target. Closes below the 20-day moving average crossing at 872.30 are needed to confirm that a top has been posted. First resistance is the overnight high crossing at 937.00. Second resistance is the 75% retracement level of the July-September decline crossing at 970.90. First support is the 10-day moving average crossing at 880.10. Second support is the 20-day moving average crossing at 872.30.

December silver was lower overnight as it consolidates below the 20-day moving average crossing at 12.198. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 12.197 are needed to confirm that a short-term low has been posted. If December renews last week's decline, September's low crossing at 10.310 is the next downside target. First resistance is the 20-day moving average crossing at 12.198. Second resistance is the overnight high crossing at 12.335. First support is last Friday's low crossing at 10.840. Second support is September's low crossing at 10.310.

December copper was sharply lower overnight and posted a new contract low as it extended the previous low of 220.00. Stochastics and the RSI are oversold but are bearish signaling that additional weakness is possible near-term. If December extends this summer's decline, monthly support crossing at 201.33 is the next downside target. Closes above the 20-day moving average crossing at 285.63 are needed to confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 258.94. Second resistance is the 20-day moving average crossing at 285.63. First support is the overnight low crossing at 216.00. Second support is monthly support crossing at 201.33.