Equity markets seem to be heading in different directions once again this morning. In the U.S., the Dow Industrials (US30 CFD) have been trading lower and appeared to be declining within a 12,100 to 12,300 trading channel. Similarly, although the S&P 500 (SPX500 CFD) has advanced in early trading, significant headwinds appear to be in place near 1,360 and a decline to retest support near 1,330 could be possible. Meanwhile, in Canada, equities appear to be responding to overnight commodity price increases. In particular note that the S&P/TSX 60 index has broken through resistance at 885 and appears to be gearing up for another run at resistance in the 900-905 area.

Commodities, meanwhile, appear to be attracting renewed interest today, particularly in the energy area. Natural gas has advanced to a new high and has been testing the key $13/mcf level. Meanwhile crude oil has been testing $139/bbl resistance once again. If crude is able to clear that hurdle it could advance to test a $147.50/bbl measured objective with support in place near $135/bbl and $131.50/bbl.

Precious metals also appear to be attracting renewed interest, particularly silver, which broke through resistance at $17/oz this morning. Gold, meanwhile, has advanced toward $890/oz but recall that significant resistance still appears to be in place near $900/oz.

Canadian share update: precious metals lead TSX advances

For the first time in a while, precious metals seem to be asserting themselves. Since peaking back in March, gold and silver have been consolidating while related equities have appeared to be under distribution. Today, however, precious metal producers have advanced across the board led by: Silver Standard (TSX: T.SSO, Stock Forum), up 4.5%, Golden Star (TSX: T.GSC, Stock Forum), up 3.6%, Barrick Gold (TSX: T.ABX, Stock Forum), up 3.2%, and Pan American Silver (TSX: T.PAA, Stock Forum), up 3.8%.

Also note that FNX Mining (TSX: T.FNX, Stock Forum) continues to attract new interest, building on Friday’s momentum to post another 4.8% advance so far today. Recall that although FNX is primarily a nickel miner, its deal to spin off 50% of its precious metal production into a new company to be called Gold Wheaton appears to have been well received by investors.

Upcoming educational webinars

In the coming months, Colin Cieszynski will be presenting a series of free webinars on trading for accredited investors from coast to coast. 

Date                Time                Topic                                      

July 22             7:30 pm ET      Developing a Trading Strategy 1:
                                                What Kind of Trader Are You?

For more information on these and additional CMC Markets seminars, please go to CMC Markets Seminar Registration Page at http://www.cmcmarkets.ca/en/content/education/free_seminars.do

This commentary is based upon technical analysis. Technical analysis is the study of price and volume and the interpretation of trading patterns associated with such studies in an attempt to project future price movements. Technical analysis does not consider any of the fundamentals of an underlying company, and as such is inherently uncertain and should not be the only factor considered by an investor in making an investment decision. 

This commentary is provided for informational and educational purposes only. Nothing contained in this commentary is intended as investment advice or a recommendation or solicitation to buy or sell. All opinions expressed are current as of the date of publication and subject to change without notice.

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