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.

Gold Is Wasting Time Trying to Bottom So High

By

Today the yellow metal bounced within $2 of its long-standing target.

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: Gold bounced Tuesday within $2 of its long-standing target. This impatience reflects optimism, which helps to confirm that the target will need to be probed considerably to form a bottom.

Dollar Basket
Mar Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Monday's high was not retested Tuesday, which suggests that the bounce's momentum has peaked. In fact, the reaction down to 80.05 fell as far as possible without launching a new downleg. Any lower would likely gain traction, but a sideways range could meanwhile develop.

Eurodollar
Mar Contract EC; (NYSEARCA:FXE)
Tuesday's probe above Monday's high tested the bounce's 1.3465-1.3475 bounce limit, but essentially ranged around Monday morning's high.While the bounce has probably ended, there is not yet any signal that momentum is about to reverse back down.

Gold
Apr Contract GC; (NYSEARCA:GLD)
Attacking the 1637.40 target to within $2 Tuesday launched a bounce back to the 1653.00-1654.00 bounce limit. The impatience reflects optimism that confirms the target's test won't be the low. It could still be the beginning of a bottom, but it must first be tested.

Silver
Mar Contract SI; (NYSEARCA:SLV)
Tuesday's low stopped short of the decline's 30.25 target before bouncing back into Monday's range. The drop should still extend, so long as 31.05 holds as resistance.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
Monday's delay in resuming the decline did not necessarily default to a bigger corrective bounce being underway. Tuesday's gap down also delayed resuming the decline by narrowly avoiding a test of 143-04. Breaking any lower, or back above 144-00, should extend in that direction.

Crude Oil
Mar Contract CL; (NYSEARCA:USO)
Tuesday's gap up above 97.00 extended to test 97.80, which suggests a quick test of the 99.00 target is underway. Back under 96.60-96.75 would signal the rally effort had failed and that momentum was reversing down.

Natural Gas
Mar Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Tuesday's initial firming to 3.30 reacted down to test 3.25 support. Nothing short of a fresh high - preferably above 3.33 - would still signal a new upleg underway. Any further delay past Wednesday's open would all but require trending down to new lows.

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
 
Featured Videos

WHAT'S POPULAR IN THE VILLE