Crude Oil's Pullback Is Attacking Its Target

By Rod David  AUG 07, 2013 5:21 PM

The pattern suggests that this leg's lows should print some time tomorrow.

 


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 pullback is attacking its target. And its target is almost the maximum allowable pullback while still being able to recover back to recent highs.

Dollar Basket
Sep Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Tuesday’s test of 81.65 support was extended Wednesday on the way to new lows for the move testing 81.30. There is still room to 80.65 before signaling a bigger drop underway — which would likely be very aggressive.

Eurodollar
Sep Contract EC; (NYSEARCA:FXE)
The rally’s 1.3333 target was probed Wednesday, holding prior highs. There is no new setup in-play.

Gold
Oct Contract GC; (NYSEARCA:GLD)
Reversing up from fresh lows overnight back into positive territory intraday qualifies as bullish activity, which the pattern required for Wednesday. But that must be exploited Thursday morning to signal momentum reversing up.

Silver
Sep Contract SI; (NYSEARCA:SLV)
Gapping down sharply Wednesday was recovered to fill the gap back up to Tuesday’s close. If the hesitation there — instead of probing higher — was pessimism, then extending any higher early Thursday should extend higher sharply.

30-year Treasury
Sep Contract US; (NYSEARCA:TLT)
Wednesday’s probe above Tuesday’s range exceeded Friday’s 133-25 high, jeopardizing the 131-06 target. Closing back under 133-10 Thursday’s would reinstate it.

Crude Oil
Sep Contract CL; (NYSEARCA:USO)
Wednesday extended the slide instead of bouncing from Tuesday’s filled gap. The 103.55 target remains intact.

Natural Gas
Sep Contract CL; (NYSEARCA:UNG, UNL)
Gapping down Wednesday may have discounted a negative EIA report due Thursday, but that wouldn’t make a positive reaction any likelier to extend higher without first forming an accumulation pattern at the low.

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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