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Natural Gas Rally Confirms It Wants Out of This Range

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

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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: 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
Dec Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
The 81.00-81.05 resistance that was tested throughout Tuesday was also tested throughout Wednesday, and held.

Eurodollar
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.

Gold
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.

Silver
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
Dec Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
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.
No positions in stocks mentioned.
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