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Gold's Pause May Be Ending So the Downleg Can Resume

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It appears that gold sellers have refueled to launch a new downleg to fresh lows.

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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 attempts to firm during the holiday each held their bounce limits, suggesting that sellers have refueled to launch a new downleg to fresh lows.

Dollar Basket
Mar Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Fresh highs over the holiday attacked 80.85 resistance, before Tuesday dipped back into negative territory, potentially rolling over to test 80.15-80.25 support.

Eurodollar
Mar Contract EC; (FXE)
Still not resuming the decline, and only firming Tuesday, all in-line with the lower-wider trading range. Testing resistance at 1.3425-1.3450 could react back down to the range's 1.3330-1.3350 lower end.

Gold
Apr Contract GC; (NYSEARCA:GLD)
Bounces to 1618.00 and then to 1615.00 each retraced back under the 1610.00 bounce limit. The latest retracement Tuesday attacked 1600.00, whose break lower would target 1589.00-1592.00.

Silver
Mar Contract SI; (NYSEARCA:SLV)
The potential to 29.30-29.35 was fulfilled Tuesday morning, and held as support, but reversing up requires first recovery 29.75.

30-Year Treasury
Mar Contract US; (NYSEARCA:TLT)
Probing above 143-18 up to 143-26 Tuesday was reversed back down to 143-04 support, whose break would resume the downleg targeting 141-26.

Crude Oil
Mar Contract CL; (NYSEARCA:USO)
Tuesday firmed back up to 96.60-96.70 resistance, whose recovery is the minimum requirement to even consider that another upleg may be forming.

Natural Gas
Mar Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Tuesday's open fired and the session eventually surged to test 3.25. Big resistance at 3.30 must be recovered before even contemplating that 3.33-3.36 can be probed to trigger another upleg.

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.
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No positions in stocks mentioned.
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