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


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

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
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.

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.

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.

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
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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