Precious Metals Starting to Signal Accumulation

By Rod David  APR 04, 2013 4:26 PM

Fresh lows could still be probed, but they're not gaining new traction.

 


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: Gold’s new lows haven’t stopped, they’ve just stopped extending down intraday. That doesn’t prevent there being another fresh low, and it’s not yet a buy signal, but it’s close.

Dollar Basket
Jun Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Thursday’s surge to fresh highs at 83.66 was reversed back into negative territory at 82.75. Bounces should hold 83.10-83.20 if the reversal intends to extend into a downleg targeting 81.40 and lower.

Eurodollar
Jun Contract EC; (NYSEARCA:FXE)
Thursday’s plunge from 1.2855 back to the 1.2750 prior lows was recovered entirely, and then some by another surge to 1.2955. So long as pullbacks hold 1.2895, a fresh high above 1.3010 could trigger a rally targeting 1.3325.

Gold
Apr Contract GC; (NYSEARCA:GLD)
The drop extended down overnight to 1539.50, but intraday lows held tests of 1547.50. Closing above 1557.50 would signal momentum reversing up, but a retest of 1539.50 can’t yet be discounted.

Silver
May Contract SI; (NYSEARCA:SLV)
Fresh lows recovered to close positive Thursday, suggesting that a bottom is forming. Back above 26.95 would confirm.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
The rally extended through 145-22 to its next higher objective at 146-12. Back under 145-14 would signal momentum reversing down.

Crude Oil
Apr Contract CL; (NYSEARCA:USO)
Extending down sharply Wednesday night had removed almost any chance of Thursday recovering 96.00. The dip to 92.23 stopped short of recovering back above 93.75-94.15 to signal that sellers had lost momentum.

Natural Gas
Apr Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Thursday’s fresh low at 3.86 was recovered into positive territory. More important is that its open gapped up, and the close almost recovered above the open’s high, which would have formed a Pivot Reversal. Almost any higher high Friday above 3.98 could extend sharply into and out of the weekend.

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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