Crude Oil Should Now Be Finished Consolidating

By Rod David  OCT 25, 2012 3:20 PM

Crude oil's third consecutive session of ranging sideways must produce an immediate reversal, or else extend the trending.

 


The following are the latest daily summaries of my ongoing intraday coverage, providing context to interpret price action. Any prices listed are for a contract's current "front month." Their direction tends to correlate with any ETFs listed for each.

Today’s Highlight: Crude oil’s third consecutive session of ranging sideways must produce an immediate reversal, or else extend the trending.

Dollar Basket
Dec Contract DX (NYSEARCA:UUP), (NYSEARCA:UDN)
Ranging narrowly sideways for the third consecutive session makes a breakout less likely to gain traction on its first attempt.

Eurodollar
Dec Contract EC; (NYSEARCA:FXE)
Thursday’s price action never strayed from the prior two sessions’ ranges, further confirming this area’s attraction. A probe under 1.2955 would be less vulnerable to sliding intraday.

Gold
Dec Contract GC; (NYSEARCA:GLD)
Thursday’s open gapped up to test the decline’s 1717.00 target as resistance where the balance of the session ranged narrowly. Friday could repeat the pattern, gapping up to the decline’s 1727.00 target. But it would not be accumulation, and a retest of 1700.00 is likely.

Silver
Dec Contract SI; (NYSEARCA:SLV)
Thursday’s gap up through 32.00 didn’t extend higher, and the balance of the session ranged narrowly. Almost any fresh high Friday would be credible for extending up to 33.00. But a retest of 31.70 first is likelier.

30-Year Treasury
Dec Contract US; (NYSEARCA:TLT)
The reaction down from the 148-00 corrective bounce target extended down further Thursday to touch 146-02. An intraday reaction up to 147-08 fell back to 146-22 Any lower close would put into play 145-04.

Crude Oil
Dec Contract CL; (NYSEARCA:USO)
Two days of consolidating under the 87.00 target were followed Thursday by a third. If not rallying almost immediately Friday, then the downleg should be extending to its 82.40 target.

Natural Gas
Dec Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Wednesday’s test of critical 3.80 support (basis Dec, 3.45 basis Nov) was probed intraday Thursday down to 3.36, but recovered back up 3.80 resistance. The detour allows 3.85 to serve again as a buy signal.

Editor's note: Rod's analytical techniques are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He applies his techniques live intraday, primarily to S&P futures, at RodDavid .com.
No positions in stocks mentioned.

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