outlook

June gold closed sharply lower on Tuesday due to a rising U.S. Dollar and the fading impacts of the sub prime credit crisis. Today's decline led to a close below the 38% retracement level of the August-March rally crossing at 897.80. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term. If June extends the decline off March's high, the 50% retracement level crossing at 854.30 is the next downside target. Closes above the 20-day moving average crossing at 963.70 are needed to confirm that a short-term low has been posted. First resistance is the 38% retracement level crossing at 897.80. Second resistance is the 10-day moving average crossing at 939.70. First support is today's low crossing at 876.30. Second support is the 50% retracement level crossing at 854.30.
May silver closed lower on Tuesday and spiked below the 50% retracement level of the August-March rally crossing at 16.585. A short covering rally tempered early losses and the mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are turning bearish again signaling that sideways to lower prices are possible near-term. If May extends this week's decline, the 62% retracement level crossing at 15.438 is the next downside target. Closes above the 20-day moving average crossing at 19.060 are needed to confirm that a short-term low has been posted. First resistance is the 38% retracement level crossing at 17.731 then the 10-day moving average crossing at 17.918. First support is today's low crossing at 16.300 then the 62% retracement level crossing at 15.438.

May copper closed lower on Tuesday due to profit taking as it consolidated some of last week's rally but remains above the 20-
day moving average crossing at 378.50. A short covering rally tempered early losses and the high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If May extends last week's rally, March's high crossing at 402.40 is the next upside target. Closes below the 10-day moving average crossing at 373.17 would signal that a short-term top has been posted. First resistance is last Friday's high crossing at 392.75. Second resistance is March's high crossing at 402.40. First support is the 20-day moving average crossing at 378.50. Second support is today's low crossing at 370.90.

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