Gold and Currencies Ready to Resume Recent Trending on Wednesday

By Rod David  NOV 27, 2012 3:02 PM

Take a look at the intraday action in commodities.


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: Wednesday should almost immediately reverse the direction from Tuesday’s pullbacks in gold and currencies if any reversal is coming anytime soon.

Dollar Basket
More of Friday’s drop back up to 80.50 was retraced Tuesday. At least one more fresh low at 79.75 remains likely so long as 80.55 holds as resistance.

Dec Contract EC; (NYSEARCA:FXE)
Tuesday’s drop back toward Friday’s 1.2915 lows should be the correction’s end to allow at least one more fresh high targeting 1.3050.

Dec Contract GC; (NYSEARCA:GLD)
The rally made no higher highs before extending Monday’s pullback Tuesday to test 1741.50. Back above 1750.00 would target at least one more higher high at 1763.00, with potential for extending up to 1802.50 or higher.

Dec Contract SI; (NYSEARCA:SLV)
Tuesday’s narrow sideways range held Monday’s 33.90 low as support. Back above 34.15 would target 34.50, and any higher would target at least 36.00.

30-year Treasury
Dec Contract US; (NYSEARCA:TLT)
The recovery above 150-14 did not extend higher Tuesday, which instead ranged narrowly back to 150-31 resistance.

Crude Oil
Jan Contract CL; (NYSEARCA:USO)
Both ends of the 86.70-88.50 range were attacked intraday Tuesday, but neither was broken to trigger the next leg.

Natural Gas
Monday’s gap down back to the last relative low’s buy signal did not extend down any lower, allowing the drop to still be considered only a corrective pullback. But a recovery above 3.82 is still needed to signal momentum reversing up.

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.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.