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Gold Kicks Off Week With Deep Plunge

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Monday's sharp decline instantly compensated for the delay from Friday's undue optimism.

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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 started out the week with a deep plunge, but it was really only a continuation of the pattern described Friday. The long-awaited retest of the lows is back on.

Dollar Basket
Mar Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Monday's fresh high attacking 80.50 was retraced into negative territory. The 81.05 bounce target remains in-play, but now pullbacks must hold 80.20.

Eurodollar
Mar Contract EC; (NYSEARCA:FXE)
Monday's bounce to 1.3430 peaked under the 1.3465-1.3475 bounce limit to maintain the 1.3275 objective below.

Gold
Apr Contract GC; (NYSEARCA:GLD)
Monday's sharp decline instantly compensated for the delay from Friday's undue optimism that pointlessly avoided probing under 1666.00 intraday. The 1637.40 objective is in-play so long as bounces now hold 1653.00-1654.00 resistance.

Silver
Mar Contract SI; (NYSEARCA:SLV)
Monday fulfilled the aggressive slide targeting 30.90, likely to extend down to fulfill the 30.25 objective.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
Monday did not immediately resume dropping under 143-04. But after only firming slightly and remaining under prior highs intraday, it does need a little more obvious strength to confirm whether the bounce is first likely to test 145-03.

Crude Oil
Mar Contract CL; (NYSEARCA:USO)
Monday's sharp rally only returned back to the range's 97.00 upper-end. Still this is another opportunity - if not the final opportunity - for a breakout quickly targeting 97.00.

Natural Gas
Mar Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Not yet reacting up sharply Friday from 3.25 support made the recent weakness much likelier to extend down to new lows. In fact, Monday's open gapped down to the 3.21 prior low. It was recovered entirely, allowing one more temporary opportunity Tuesday to launch an upleg above 3.33, and to avoid becoming a much deeper downleg.

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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