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Gold's Bounce Today Is Either the Start of a Bottom, or the End of It


Take a look at today's action in currencies and commodities.

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: Extending down to unsustainable new lows Wednesday night and trapping shorts may have worked to gold's advantage if it is launching a sizable corrective bounce.

Dollar Basket
Fresh highs testing the next higher objective at 81.55 essentially ranged sideways at resistance after the open's gap up. If the rally's momentum hasn't now peaked, then a much more significant rally is underway.

Mar Contract EC; (NYSEARCA:FXE)
The next lower objective was met Wednesday night at 1.3165. There is potential for a bounce to 1.3330, so long as 1.3145 now holds as support.

Apr Contract GC; (NYSEARCA:GLD)
Fresh lows at 1554.00 Wednesday night still recovered back above 1571.00 to signal a corrective bounce underway targeting 1596.50-1601.00. Having already tested 1584.00 intraday, the rally remains intact so long as 1575.00 holds as support.

Mar Contract SI; (NYSEARCA:SLV)
Despite not extending fresh lows Wednesday night under 28.30, Thursday's session only ranged narrowly sideways. Back above 29.03 would target 29.83.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
Wednesday's inability to maintain its break under 143-04 was explained by Thursday's gap up to 143-18 resistance that extended higher to 144-07. Unless rejected immediately Friday, the bounce should extend to 145-03-145-06.

Crude Oil
Apr Contract CL; (NYSEARCA:USO)
Fresh lows probed under 93.40 down to 92.65, but did not extend, or recover. The balance of the session ranged narrowly with resistance at 93.40, and with potential for extending down to 91.30 so long as 94.00 now holds as resistance.

Natural Gas
A volatile reaction to EAI tested 3.33 resistance momentarily, but ultimately ranged narrowly through the close.

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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