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Gold Extended Lower Without First Correcting Thursday's Break

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

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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 extended lower without first correcting Thursday's break. That's a lot of selling pressure to expend in so short a time. It does suggest this drop is only a temporary correction, but it makes the low's retest more difficult.

Dollar Basket
Mar Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Friday's gap down to 79.85 support held, preventing a lower target from being put into play.

Eurodollar
Mar Contract EC; (NYSEARCA:FXE)
Thursday's breakout extended to its 1.3465-1.3475 objective Friday. The pattern is now vulnerable to reversing down. Not reversing down Monday morning under 1.3380 would put into play the next higher objective at 1.3560-1.3580.

Gold
Feb Contract GC; (NYSEARCA:GLD)
The decline did not correct before extending down Friday. And the decline extended down by gapping again. This leaves sellers unrefueled as they test 1656.00 support, now vulnerable to testing 1675.00 resistance before resuming the decline to 1637.40.

Silver
Mar Contract SI; (NYSEARCA:SLV)
Thursday's reaction down from attacking 32.50 extended Friday to 31.20, suggesting a deeper correction underway to at least 30.50.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
Friday rewarded buyers that had absorbed the mid-week testing of 146-00/146-04 resistance. The overnight drop through 145-16 extended to and through its 144-16 objective to 144-02. The 142-26/143-04 objective is in-play so long as 144-16 isn't recovered.

Crude Oil
Mar Contract CL; (NYSEARCA:USO)
After Thursday's open rejected Wednesday's late decline, a shallower dip Friday morning was recovered intraday, but only to unchanged, all but requiring Monday to extend the rally targeting 99.00 to avoid another downdraft.

Natural Gas
Mar Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Thursday's reaction down to 3.44 wasn't recovered into the weekend, further suggesting that at least 3.37 would be tested, if not also 3.25.

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.
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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