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.

Third Time's Not So Charming for Gold


Three consecutive double-digit intraday plunges don't bode well for the yellow metal.

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: Gold's third consecutive double-digit plunge, on a Friday, all but invalidates the corrective dip scenario.

Dollar Basket
Room to probe above the 84.20 target to 84.45 was exploited Friday by gapping up, extending to fresh highs and then ranging narrowly. Holding 83.95 as support would allow the rally to next target 85.30.

Jun Contract EC; (NYSEARCA:FXE)
Friday's gap down extended to fresh lows and ranged sideways through the afternoon. Bounces holding 1.2910 would allow the decline to extend to its next target at 1.2745.

Apr Contract GC; (NYSEARCA:GLD)
Another double-digit plunge, and on a Friday, seriously undermines whether the recent drop has been only a temporary corrective pullback. The gap back down to Thursday's open was filled overnight, but reactions up were shallow and temporary before reversing to fresh lows testing 1357.50. Closing solidly above 1383.00 could still reverse the decline, which is meanwhile targeting 1333.00 and new lows.

May Contract SI; (NYSEARCA:SLV)
Friday's gap down to Wednesday's 22.42 low eventually extended to fresh lows at 22.18, extending toward the next lower target at 21.55-21.75, so long as 22.75 isn't recovered.

30-year Treasury
Jun Contract US; (NYSEARCA:TLT)
Thursday's extension to a new multi-session high testing 145-16 while also triggering the 144-24 buy signal required the rally to extend immediately Friday if valid. It did not. The session slid back toward prior lows at testing 143-28. Not exiting Monday morning in rally mode would all but require extending through the 143-13 sell signal to put 142-18 into play.

Crude Oil
Apr Contract CL; (NYSEARCA:USO)
Immediately testing 96.00 at Friday's gap up triggered a reaction back down into negative territory. Recovering back into positive territory at 96.00 still did not trigger the buy signal that would put into play 98.10.

Natural Gas
Thursday's reaction down toward 3.90 came from Wednesday's unimpressive tests of the 4.05 buy signal. Friday's recovery back to 4.05 was impressive. Closing above it still targets 4.16, whose recovery would launch a new upleg.parameters remain valid.

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