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Gold's Failed Gaps Up: We've Seen This Movie Before


That's distribution. And it's getting rid of weaker hands.

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: Another failed opening gap on gold? That's not bullish... not yet, anyway. Similar action in March preceded the stock market's drop, which dumped enough ballast to launch a leg to April's new high.

Dollar Basket
Narrow ranging Monday helped to confirm that buyers aren't yet retaking control, while leaving the door open to a corrective dip that has no requirement for its timing.

Jun Contract EC; (NYSEARCA:FXE)
Narrow ranging Monday helped to confirm that sellers aren't yet retaking control, while leaving the door open to a corrective bounce that has no requirement for its timing.

Jun Contract GC; (NYSEARCA:GLD)
Sunday night's rally to 1303.00 resistance extended slightly higher intraday to 1306.00 -- touching downtrending resistance from the two prior failed opening gaps up -- before reversing back down and filling the gap back to Friday's 1298.00 close.

May Contract SI; (NYSEARCA:SLV)
After dipping to 19.25 support Friday, Sunday night's rally attacked 19.75 resistance, before reversing back down to attack Friday's close. Trending down Tuesday would be credible for retesting prior lows.

30-Year Treasury
Jun Contract US; (NYSEARCA:TLT)
Monday's narrow opening range gave way to fresh lows testing 106-30 support. A bounce back to last week's 108-00 area high is likely so long as this dip isn't extended any deeper.

Crude Oil
May Contract CL; (NYSEARCA:USO)
Having held a test of its 101.40 pullback limit Friday, the rally was free to resume, producing fresh recovery highs Monday testing 103.00.

Natural Gas
Monday didn't delay reacting up from Friday's corrective dip to its 4.41 pullback limit, further suggesting that much more substantial rally is preparing to launch.

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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