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Too Much Gold Selling to Suddenly Bottom?


Meeting its target so quickly suggests that more selling pressure is coming down the pipeline.

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 long-outstanding objective to test fresh lows didn't take long once the recent distribution ended. While a lot of selling pressure has been satisfied, an immediate recovery would be suspicious.

Dollar Basket
Tuesday's recovery attempt was retraced entirely Wednesday. Closing any lower Thursday would signal a new downleg underway, so the rally's resumption cannot afford to hesitate.

Jun Contract EC; (NYSEARCA:FXE)
Tuesday's resumption of the decline was halfhearted, so Wednesday's bounce wasn't surprising. Since 28.55 held its test, resuming the decline Thursday would still be credible.

Apr Contract GC; (NYSEARCA:GLD)
Despite extending Tuesday's plunge overnight, Wednesday's open had retraced much of the extra drop. Another downleg extended much further to finally test the 1550.00 target area. Bouncing more than $10 from testing 1547.50 would be the first suggestion that the drop had ended.

May Contract SI; (NYSEARCA:SLV)
The drop extended down sharply to 26.67. Bounces must now hold 27.29 to maintain the decline's momentum.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
The rally had been unlikely to extend by gapping, so Wednesday's open trended up to the 145-14 target, and to within 2 ticks of the 145-22 target. Back under 145-14 would signal the rally had ended.

Crude Oil
Apr Contract CL; (NYSEARCA:USO)
Absorbing two consecutive intraday dips recovering to 97.00 from 96.00 didn't allow any further hesitation Wednesday before resuming the rally. But the open immediately dipped, and the session extended down to this week's lowest levels attacking 94.00. Unless rejected immediately Thursday, 99.00's test will require forming a new accumulation pattern.

Natural Gas
There was nothing bullish about Tuesday failing to reject yet another test of 3.97, so Wednesday's session dipped to fresh lows at 3.91. There is no signal.

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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