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Could Gold's Plunge Wednesday Have Ended the Decline?

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Plus, fresh lows in silver have created room for bouncing up.

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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 tumble to sharply lower lows Wednesday came right on cue after Tuesday's signal that the decline was ready to resume. It is quickly approaching the next objective, and has room to bounce in the interim.

Dollar Basket
Mar Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Tuesday night's weakness stopped just short of its 80.15-80.25 support before rallying sharply to fresh highs testing 81.25. Back under 81.05 would signal momentum reversing down.

Eurodollar
Mar Contract EC; (NYSEARCA:FXE)
Tuesday night's bounce right into the middle of 1.3425-1.3450 resistance held, and launched a drop back through prior lows to 1.3275, just under the reaction's 1.3330 target. The drop's momentum remains intact so long as bounces hold 1.3350.

Gold
Apr Contract GC; (NYSEARCA:GLD)
Refueling enough through Tuesday's close to suggest the decline was ready to resume proved to be an understatement. The close under 1610.00 had already extended to its 1589.00-1592.00 target pre-open. It continued dropping intraday and later, testing 1565.00. If 1563.00 is touched, then a close above 1571.00 would end this leg's momentum.

Silver
Mar Contract SI; (NYSEARCA:SLV)
Fresh lows testing 28.30 have created room for bouncing up to 29.00 before actually signaling that momentum was reversing up.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
Wednesday's gap down under 143-04 was recovered momentarily into positive territory, but the recovery ultimately failed. The move to 141-26 is underway, but still needs a second consecutive lower fresh low close Thursday to confirm.

Crude Oil
Apr Contract CL; (NYSEARCA:USO)
Tuesday's bounce to 97.15-97.30 resistance reacted down sharply Wednesday to fresh lows testing 94.20. Closing back above 95.70 would signal a rally underway to 101.15. Meanwhile, this drop can extend to 93.40.

Natural Gas
Mar Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Wednesday's early attack on 3.33 wasn't rejected, but it didn't extend either, so no rally is signaled.

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.

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