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Should Gold Bulls Be Comforted Since Thursday Morning's Plunge Was Recovered?


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

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: Was gold's temporary plunge Thursday morning a warning shot across the bow at bulls? Its recovery back to prior highs expended a lot of energy without gaining any traction for the effort (i.e., closing well under that resistance).

Dollar Basket
Wednesday's retest of the bounce's 79.85 target gave way sharply Thursday instead of first retesting the decline's target. So long as 80.05 now holds as support, the rally is next targeting 81.05.

Mar Contract EC; (NYSEARCA:FXE)
The retest of the rally's 1.3640 target never happened before its reaction down extended much further Thursday to 1.3375. The expectation to resolve down regardless now seems underway so long as bounces hold the rally's 1.3465-1.3475 prior target.

Apr Contract GC; (NYSEARCA:GLD)
Thursday morning's plunge to 1663.40 was recovered back to prior highs in positive territory at 1683.90, only to react back down to attack 1669.00-1670.00. Extending lower Friday morning should attack or probe 1660.00 before any further consolidation that might delay retesting 1637.40.

Mar Contract SI; (NYSEARCA:SLV)
The break under uptrending support Thursday down to 31.30 was recovered to test the trendline's 31.77 break before reversing back down to almost touch the morning's low.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
Wednesday's bounce had held 143-18 resistance to avoid signaling that momentum was reversing up. Fresh highs to 144-06 Thursday during the stock market decline were relatively subdued. Back under 143-18 would resume the decline targeting 141-26.

Crude Oil
Mar Contract CL; (NYSEARCA:USO)
Thursday's open needed to extend higher immediately above 97.00 for Wednesday's recovery from 95.00 to be bullish. But the opening test of 97.00 reacted down sharply to 95.55. Almost any further delay in rallying through 97.00 would all but require testing 94.20 next.

Natural Gas
Wednesday's recovery to the upper-end of the 3.37-3.43 resistance was reversed Thursday morning in reaction to the EIA report. Its drop to 3.28 .must be recovered to close back above 3.36 Friday to prevent a new downleg.

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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