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Natural Gas Is Pushing Through Resistance

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Well-timed surges through resistance are gaining sponsorship.

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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: Natural gas has now triggered two buy signals. This point in the pattern should not hesitate if the rally is valid.

Dollar Basket
Jun Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Wednesday's bounce to the 84.45 buy signal had failed to trigger. Thursday's reaction down to 83.54 left a gap outstanding that can attract price back up to it.

Eurodollar
Jun Contract EC; (NYSEARCA:FXE)
Thursday's bounce back to 1.2955 resistance was an inside day compared to Wednesday's wide range. A retest of the lows cannot be discounted without also recovering Wednesday's 1.3000 high.

Gold
Apr Contract GC; (NYSEARCA:GLD)
An overnight bounce into Thursday's open retraced 61.8% of Wednesday's drop from 1414.00, having held 1357.70 support. Above 1398.50 would likely test 1409.00, where any higher close would suggest a much bigger corrective bounce was underway.

Silver
May Contract SI; (NYSEARCA:SLV)
Thursday's ranging consolidated the recent tests of the 23.25 buy signal, and still left outstanding the recent opening low's gap.

30-Year Treasury
Jun Contract US; (NYSEARCA:TLT)
Fresh lows overnight probed the decline's 142-19 target down to 149-09. Despite recovering intraday, fresh post-open lows tested 142-16. The opportunity for bottoming has almost disappeared entirely. The bond is always vulnerable to steep counter-trend spikes into the weekend, but it's too late to start a credible rally.

Crude Oil
Apr Contract CL; (NYSEARCA:USO)
Having failed to hold 94.00 support, fresh lows tested 92.25 Thursday. A reaction up through the morning tested retested 94.00 as resistance, and held. Extending higher immediately may be the only way to overcome the attraction back down to Thursday's 92.85 gap.

Natural Gas
Apr Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Having consolidated its recovery to 4.16, Thursday needed to resume the rally without much delay. The EAI report was absorbed and price did trend up to fresh highs testing 4.25. Pullbacks must now hold 4.16 to maintain the rally's momentum.

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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