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If Crude Oil Is Rallying, Then It Must Close Higher Again Thursday

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Take a look at the intraday action in commodities during this holiday-shortened week.

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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: Crude pil got into the holiday spirit Wednesday, a little late in more ways than one, as the reaction up must avoid any lower close.

Dollar Basket
Mar Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
After teasing it Thursday, the 79.79 corrective bounce target was met Friday. And tested further Monday. Its reaction back down to 79.50 was largely recovered. Closing under 79.55 would target 79.30 and 79.05. But another probe above 79.79 would target 80.20.

Eurodollar
Mar Contract EC; (NYSEARCA:FXE)
The 1.3140 target was never tested, and not even attacked. Meanwhile, the reaction down from 1.3313 was retraced by 61.8% to test 1.3265. Any higher would target 1.3305, whose break would target new highs. Under 1.3196 would resume the decline.

Gold
Feb Contract GC; (NYSEARCA:GLD)
The extended consolidation around 1657.00 was extended Wednesday to attack 1669.00. The session returned to 1660.00, but did not close under 1657.00 where the recovery would be rejected.

Silver
Mar Contract SI; (NYSEARCA:SLV)
The bounce potential to 31.65 signaled Friday has not yet extended, but has meanwhile absorbed selling pressure back down to 29.85.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
Monday's dip back into the 147-00/147-12 corrective target area was rejected somewhat Wednesday by firming. But the session ultimately only ranged around 147-12.

Crude Oil
Feb Contract CL; (NYSEARCA:USO)
Avoiding a second consecutive lower close Monday all but marginalized sellers. Firming back to 89.20 over the holiday launched a surge through 91.00 Wednesday. Now pullbacks to 90.05-90.30 are likely to hold, if the rally is to extend.

Natural Gas
Jan Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Monday's rejection of Friday's recovery did not gain traction, but there is no signal in-play to trend either way.

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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