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Thursday's Gold Rally Triggers a Rubber Band Setup Today

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This suggests a much, much bigger move down.

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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: Gold's pattern indicated Tuesday that it was preparing to trend sharply. Failing to confirm Thursday's break higher with a second consecutive higher close Friday would mean the trend's direction would be down. Friday's substantial drop would seem to confirm that.

Dollar Basket
Jun Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Friday's bounce ended the day testing 83.40 as support. Its recovery would prevent the pullback from extending down to 82.15.

Eurodollar
Jun Contract EC; (NYSEARCA:FXE)
Friday's drop held 1.2955 as support, maintaining momentum to the bounce's 1.3110 target.

Gold
Apr Contract GC; (NYSEARCA:GLD)
Despite extending Thursday's rally overnight to test 1421.00, Friday's steep drop eventually tested 1390.00 as support. Bounces should now hold 1398.50 to maintain that Thursday's rally stretched the rubber band for a much more substantial snap back down initially targeting 1350.00-1351.00, on the way to new lows under 1290.00.

Silver
May Contract SI; (NYSEARCA:SLV)
Friday's open gapped down to the 22.35 sell signal and tested 22.10 intraday. Unfinished business below at 21.80 remains in play.

30-Year Treasury
Jun Contract US; (NYSEARCA:TLT)
Probing above the corrective bounce to 142-00 stopped short of fulfilling its 142-24 potential before reversing down sharply Friday to 140-04, within a half-point of the week's 139-29 low. The afternoon's flight-to-safety triggered a bounce to 141-06 resistance.

Crude Oil
Apr Contract CL; (NYSEARCA:USO)
Friday's gap down was also biased downward, but remained within Thursday's range to form an "inside day." Sellers expended energy throughout the day, produced a new low close, but gained no traction for the effort. It's not a buy signal, but it adds instant credibility to any initial buying pressure Monday back above Friday's 93.25 high.

Natural Gas
Apr Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Lower lows into the weekend testing 4.00 must be recovered back above 4.11 to begin signaling that momentum is reversing up.

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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