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This Time, Natural Gas Bulls Mean Business

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If natural gas does not rally from this setup, it would be suspicious.

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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: Could natural gas be any more obvious that it doesn't intend to break through recent lows that have been tested, retested, and retested again? Yes, by actually rallying. Not extending sharply higher Tuesday would be suspicious.

Dollar Basket
Jun Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Overnight strength into Monday's open nevertheless reversed to range narrowly sideways, still absorbing last week's volatility.

Eurodollar
Jun Contract EC; (NYSEARCA:FXE)
Overnight weakness into Monday's open nevertheless recovered to range narrowly sideways, still absorbing last week's volatility.

Gold
Aug Contract GC; (NYSEARCA:GLD)
Last week's gaps up were producing another gap up the following day, compensating for not extending higher intraday. But Monday's immediate recovery from Friday's depressed session barely registered any volatility intraday. None of which is a sell signal, and only further suggesting that the rally's sponsorship is waning. A failed intraday probe of fresh highs may still be needed before another downleg can begin.

Silver
Sep Contract SI; (NYSEARCA:SLV)
Monday's gap down extended momentarily to test 19.55 before recovering back into positive territory. But the recovery never converted into resuming the rally, which still undermines the rally's momentum.

30-year Treasury
Sep Contract US; (NYSEARCA:TLT)
Monday's initial weakness wasn't insignificant, but recovering it back into positive territory (on the retail sales miss) wasn't impressive, as the balance of the session ranged narrowly under 135-00 resistance.

Crude Oil
Aug Contract CL; (NYSEARCA:USO)
Sunday night's attack on Friday's low reacted back up Monday to retest the rally's 106.35 target. The 103.30 pullback objective wasn't touched, so rallying prematurely would not be as reliable, but could still extend to fresh highs targeting 110.65-110.75.

Natural Gas
Aug Contract CL; (NYSEARCA:UNG), (NYSEARCA:UNL)
Yet another dip into the 3.55-3.60 support range held. And produced an obvious reaction back up. Monday's support test was of a new character, both dipping and recovering sharply intraday, testing the 3.73 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.
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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