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Will Crude Oil Extend Its Rally?

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

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

Dollar Basket
Jun Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
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.

Eurodollar
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.

Gold
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.

Silver
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.
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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