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Natural Gas Rally Confirms It Wants Out of This Range


Pre-holiday trading depressed interest in all but the energy sector.

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: Pre-holiday trading depressed interest in all but the energy sector. While crude oil was influenced by Middle East news, natural gas extended its well-timed rally to fresh highs.

Dollar Basket
The 81.00-81.05 resistance that was tested throughout Tuesday was also tested throughout Wednesday, and held.

Dec Contract EC; (NYSEARCA:FXE)
Failing to confirm Monday's surge on Tuesday did not require a reaction down on Wednesday, which only ranged narrowly around their 1.2825 highs.

Dec Contract GC; (NYSEARCA:GLD)
Wednesday's bounce was no more impressive than Tuesday's dip. Neither signaled nor confirmed any other parameter. Still ranging between 1727.00-1714.50 prevents signaling any trending underway.

Dec Contract SI; (NYSEARCA:SLV)
Not probing and rejecting a fresh high Tuesday, while also holding "lower prior highs" as support, did prevent selling pressure from gaining traction. And that allowed a probe of fresh highs up to 33.40, the highest levels in almost two months. Extending above 33.55 would suggest the rally is extending. Otherwise, a pullback has room down to 32.45 before signaling that momentum is reversing down.

30-year Treasury
Dec Contract US; (NYSEARCA:TLT)
Tuesday's extension of Monday's drop extended down further Wednesday, putting into play 149-26 so long as 150-14 holds as resistance.

Crude Oil
Dec Contract CL; (NYSEARCA:USO)
Wednesday's gap up to 87.70 was retraced entirely by the actual announcement of a cease fire. A bounce back toward the open only added a higher sell signal at 86.70, which would be confirmed under 85.75.

Natural Gas
Tuesday's resumption of the rally was confirmed by extending higher Wednesday to test 3.90. Targets include 4.05 and then 4.25.

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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