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 Gets Crushed Trying to Resume, Complete Its Bear Market

By

History does often repeat, so beware another temporary rejection.

PrintPRINT
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 was crushed at Thursday's open, right back down to levels that were last tested by also gapping down. History does often repeat, so beware another temporary rejection. Otherwise, extending down to new lows without another corrective bounce could lead to a very durable bottom.

Dollar Basket
Dec Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Wednesday's reaction up from Tuesday's probe under the decline's 79.75 target extended sharply higher Thursday to test 80.30. A better bottom would have formed from first probing a fresh low, and there is potential for a test of 80.40 to end the rally.

Eurodollar
Dec Contract EC; (NYSEARCA:FXE)
Wednesday's reaction down from probing above the rally's 1.3050 target extended sharply lower Thursday to 1.2950. A better top would have formed from first probing a fresh high, and there is potential for a test of 1.2930 to end the decline.

Gold
Feb Contract GC; (NYSEARCA:GLD)
After Wednesday's recovery from a fresh low at 1686.00 stopped short of actually reversing momentum back up, Wednesday's low was attacked at Thursday's open down to 1687.10. Despite not actually probing a fresh low, Thursday reversed up into positive territory above Wednesday morning's 1702.70 prior high. The bounce has potential for extending up to 1710.00, where another downleg would be likely.

Silver
Mar Contract SI; (NYSEARCA:SLV)
Thursday's opening dip nearly touched Wednesday's 32.58 low before reversing up sharply into positive territory at 33.33, above the prior two sessions' highs, and above 33.00 to further suggest that sellers are not gaining much traction.

30-Year Treasury
Mar Contract US; (NYSEARCA:TLT)
Despite retracing a probe above 150-14 prior highs Wednesday, Thursday gapped up to extend the rally to 150-28. The close nevertheless attacked 150-14 as support. But momentum does not reverse down without first breaking under 150-10.

Crude Oil
Jan Contract CL; (NYSEARCA:USO)
The growing likelihood for at least an obligatory dip to 86.50 was fulfilled by Thursday's gap down. Its brief reaction up failed. Extending under 85.85 would put into play a test of the 82.00 area.

Natural Gas
Jan Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Wednesday's surge extended higher only momentarily Thursday. Its reaction down was too shallow for sellers to regain control. Closing above 3.72 would still be credible for resuming the recovery.

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.
PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE