Metals are sending mixed signals

Copper - Copper Rods Scrap Metal

SpreadEdge Capital specializes in seasonal spread trading across a wide variety of commodity markets. A spread trade is the simultaneous purchase and sale of the same commodity with different delivery dates.  SpreadEdge publishes a weekly Newsletter that provides several seasonal spread trade opportunities every week.

Copper Technical

Copper successfully surpassed the overhead resistance by the end of the week on May 17. However, this week ended May 24, saw a decline of (5.5%) in Copper's value, failing to sustain the breakthrough. The combination of the candles for week ending May 17 and May 24 have formed a "dark cloud cover pattern.



On the bottom right corner of the weekly chart, there is a monthly chart illustrating the past 15 months of Copper's performance. It's worth noting that the failed breakthrough appears weak when viewed on a monthly chart as well.


Silver Technical

While Silver also experienced weakness last week with a (2.3%) drop, the weekly chart indicates that this decline did not cause significant technical damage, suggesting Silver may continue an upward trajectory.

Gold Technical

Gold has formed a classic "cup with handle" pattern and has successfully broken out upwards. Notably, the pattern has been ongoing for a considerable period. The monthly chart reveals that the cup's left side dates to late 2011, a full 12 years ago. Despite the long upper wicks on the last 2 candles, the strength of the pattern and the strong breakout signal suggest Gold is likely at the initial stages of a significant upward movement.


In summary, the recent price movements in Gold and Silver mainly seem to reflect a consolidation of gains rather than a failure to sustain a breakthrough. I anticipate these trends will continue. In contrast, Copper appears to be the weakest of the three markets and is more likely to return to lower levels.

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The SpreadEdge Weekly Newsletter is published every weekend and provides a broad overview of the important seasonal, technical, and fundamental indicators within the Energy, Grains, Meats, Softs, Metals and Currency markets.  In addition, spread trade recommendations and follow-up on open trades is also provided.  For a free copy of the Weekly Newsletter, please send an email to

Darren Carlat

SpreadEdge Capital, LLC

(214) 636-3133


SpreadEdge Capital, LLC is registered as a Commodity Trading Advisor with the Commodity Futures Trading Commission and is an NFA member. Past performance is not indicative of future results. Futures trading is not suitable for all investors, The risk associated with futures trading is substantial. Only risk capital should be used for these investments because you can lose more than your original investment. This is not a solicitation.

On the date of publication, Darren Carlat had a position in: SIN24 , GCM24 . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.