Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Crude Oil's Pop Came Too Late to Gain Traction


Tuesday's warning shot across the bow could be a direct hit if fired again early Wednesday.

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 oil's post-open pop came too late to gain traction. But it still suggests that pent-up buying pressure is beginning to boil over.

Dollar Basket
Tuesday's bounce was too shallow to reverse momentum up above 83.15, although the "lower prior highs" that were tested Monday were reinforced as support.

Jun Contract EC; (NYSEARCA:FXE)
Tuesday's narrow hovering under the rally's 1.3110 target suggested that at least a momentary fresh high is needed to create a slingshot effect that can reverse down.

Apr Contract GC; (NYSEARCA:GLD)
All of Monday's rally was retraced Tuesday back down to under 1390.00. The close narrowly avoided recovering 1398.50 so there remains potential for another drop Wednesday to resume the decline.

May Contract SI; (NYSEARCA:SLV)
Tuesday's gap down to and through the 22.35 sell signal did a more thorough job of filling the gap back to 22.22 that was rejected too impatiently Monday for its bottom to be durable. But the balance of the session only hovered there optimistically, suggesting the drop would resume and extend.

30-year Treasury
Jun Contract US; (NYSEARCA:TLT)
Narrow sideways ranging around 1405-00 (basis Sep, 141-06 basis Jun) avoided breaking lower, which continues to allow a bottoming pattern to form.

Crude Oil
Apr Contract CL; (NYSEARCA:USO)
Didn't rally immediately Tuesday, and only after initially dipping was there a rally to fresh highs attacking 94.50. Having originated too late, it was retraced back under prior highs down to 92.75. Nevertheless, the same setup applies to Wednesday, with any immediate rally being credible for extending to 96.00 and probably then on to 98.10.

Natural Gas
Tuesday's sideways ranging offered no new information, although surging early through 4.01 would be credible for extending higher to at least test the 4.11 buy 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.
< Previous
  • 1
Next >
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.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos