Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Crude Oil Came Alive Today


A rally in crude oil cannot afford to hesitate.

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 came alive Monday, but a rally can't afford to hesitate. Any further hesitation would make the pattern very top heavy very fast.

Dollar Basket
Sunday night's plunge under prior lows was recovered into Monday's open, and extended back up to 83.05 resistance. Probes of 83.20-83.409 are possible, but must be exceeded to signal a new rally underway.

Jun Contract EC; (NYSEARCA:FXE)
Friday's probe above 1.2955 had to be rejected Monday, and the market went a long way to get that done, rejecting an overnight rally back to prior highs at 1.3095 back to new lows under 1.2850. That's quite a shock to the system, which might be absorbed by delaying lower lows. But a second consecutive lower close Tuesday would confirm a new downleg underway.

Apr Contract GC; (NYSEARCA:GLD)
Monday's gap down extended to test 1588.50, but recovered back to Friday's 1606.00 close to avoid signaling a new downleg underway. Back under 1601.00 and 1596.50 would still qualify.

May Contract SI; (NYSEARCA:SLV)
Monday's probe under prior lows held 28.45 and quickly recovered back above 28.65 support to again avoid signaling a new downleg underway.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
Despite its breakout having become almost obligatory, Friday's attack on the 143-22 buy signal reacted down Sunday night to test 142-24 support. The reaction was recovered entirely intraday Monday, although 143-22 was still being tested and not yet triggered.

Crude Oil
Apr Contract CL; (NYSEARCA:USO)
The on-again pattern was on-again with a vengeance Monday, gapping up through 94.00 to touch 95.65 before hesitating. A second consecutive fresh high close Tuesday would confirm the breakout. Otherwise, that might have been the last opportunity to avoid a new downleg.

Natural Gas
Monday's opening test of 4.00 resistance held again, this time reacting down more than a dime. A second consecutive lower close Tuesday would put into play 3.30-3.35.

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.
< Previous
  • 1
Next >
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.
Featured Videos