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Too Much Gold Selling to Suddenly Bottom?

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

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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: 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
Jun Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
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.

Eurodollar
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.

Gold
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.

Silver
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
Apr Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
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.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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