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Gold's Bounce Target Was Met and Held

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Trying to resume the recovery too quickly would destroy a bottoming opportunity.

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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 bounce target that was put into play Monday was fulfilled on Tuesday -- and it held as resistance. Trying to resume the recovery too quickly would destroy a bottoming opportunity - like Monday morning's initial bounce.

Dollar Basket
Jun Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Tuesday's gap down extended to fresh lows and the 81.40 target remains in-play, now so long as bounces were to hold any test of 82.20 resistance.

Eurodollar
Jun Contract EC; (NYSEARCA:FXE)
Gapping up Tuesday and extending higher to fresh highs at 1.3208 keeps alive the 1.3325 target, which now requires that pullbacks hold any test of 1.3105 as support.

Gold
Apr Contract GC; (NYSEARCA:GLD)
Despite falling to lows overnight at 1321.50, Tuesday's open gapped up to test the 1400.00 target that had been put into play above 1364.00. Its reaction down to 1372.50 ranged sideways back to 1395.00. Back under 1364.00 would target fresh lows, perhaps launching a new downleg with potential down to 1220.00. Back above 1400.00 would target 1428.00 and higher.

Silver
May Contract SI; (NYSEARCA:SLV)
Monday night's fresh low down to 22.00 was recovered Tuesday up to almost 24.00. An upleg would be signaled underway by closing above 24.15.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
Tuesday's dip back into negative territory held a test of the 147-14 pullback limit, maintaining the likelihood to resume the rally next targeting 149-16.

Crude Oil
Apr Contract CL; (NYSEARCA:USO)
Tuesday's second consecutive close under 89.25 essentially requires a close under 87.00 to follow.

Natural Gas
Apr Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Tuesday's opening gap up to the 4.18 resistance was reversed back to the recent triangle's 4.08 prior low. That was recovered back into positive territory, attacking 4.18. Initial strength Wednesday would be credible for forming a bullish two-day pivot reversal pattern, confirmed by extending to close at fresh highs targeting 4.50.

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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