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Will Crude Oil Extend Its Rally?


Crude oil's minimum objective was met Tuesday, and so far it has not been not rejected.

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: Can crude oil extend its rally now that its minimum objective was met?

Dollar Basket
Rejecting Tuesday's gap up above the rally's 83.33 target immediately at Wednesday's open would form an "Island Reversal," likely to extend down at least temporarily.

Jun Contract EC; (NYSEARCA:FXE)
Monday's biased-up inside day was likely to fail, which Tuesday's drop back into the 1.2955-1.3020 target range fulfilled. Trending is now likely to resume, and the first break beyond 1.2955-1.3075 is likely to extend in that direction.

Aug Contract GC; (NYSEARCA:GLD)
Extending to 1267.00 was enough for a reaction down to test the 1240.00 pullback limit. Back above 1248.50 would put into play the 1271.50 target.

Sep Contract SI; (NYSEARCA:SLV)
Tuesday's dip extended further down to test 19.30, still requiring a recovery above 19.70 to trigger a rally.

30-year Treasury
Sep Contract US; (NYSEARCA:TLT)
Yet another day of consolidating narrowly above 135-00 and still no retest of recent lows. The extended narrowing range suggests the first trending attempt will be false, and reversed more substantially in the opposite direction.

Crude Oil
Aug Contract CL; (NYSEARCA:USO)
The rally extended to its minimum objective of filling the gap outstanding to the 98.45-99.00 gap, and through it to test 99.85. Potential for extending higher to 101.75 and 106.35 remains alive so long as pullbacks now hold 99.15 as support.

Natural Gas
Aug Contract CL; (NYSEARCA:UNG, UNL)
Tuesday's gap up to the 3.62 buy signal soon extended higher to test 3.66, still needing to recover 3.73 to signal a new rally leg underway.

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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