Gold's Bounce Today Is Either the Start of a Bottom, or the End of It

By Rod David  FEB 21, 2013 2:47 PM

Take a look at today's action in currencies and 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: Extending down to unsustainable new lows Wednesday night and trapping shorts may have worked to gold's advantage if it is launching a sizable corrective bounce.

Dollar Basket
Mar Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Fresh highs testing the next higher objective at 81.55 essentially ranged sideways at resistance after the open’s gap up. If the rally’s momentum hasn’t now peaked, then a much more significant rally is underway.

Eurodollar
Mar Contract EC; (NYSEARCA:FXE)
The next lower objective was met Wednesday night at 1.3165. There is potential for a bounce to 1.3330, so long as 1.3145 now holds as support.

Gold
Apr Contract GC; (NYSEARCA:GLD)
Fresh lows at 1554.00 Wednesday night still recovered back above 1571.00 to signal a corrective bounce underway targeting 1596.50-1601.00. Having already tested 1584.00 intraday, the rally remains intact so long as 1575.00 holds as support.

Silver
Mar Contract SI; (NYSEARCA:SLV)
Despite not extending fresh lows Wednesday night under 28.30, Thursday’s session only ranged narrowly sideways. Back above 29.03 would target 29.83.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
Wednesday’s inability to maintain its break under 143-04 was explained by Thursday’s gap up to 143-18 resistance that extended higher to 144-07. Unless rejected immediately Friday, the bounce should extend to 145-03-145-06.

Crude Oil
Apr Contract CL; (NYSEARCA:USO)
Fresh lows probed under 93.40 down to 92.65, but did not extend, or recover. The balance of the session ranged narrowly with resistance at 93.40, and with potential for extending down to 91.30 so long as 94.00 now holds as resistance.

Natural Gas
Mar Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
A volatile reaction to EAI tested 3.33 resistance momentarily, but ultimately ranged narrowly through the close.

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.