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Is Gold Still Bottoming?


Friday's wide ranging session held relevant support. Barely.

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: Whether Friday's employment situation report helped currencies to confirm recent breakouts, but generally only triggered volatility elsewhere. Even then, currencies are required to produce at least one more new trending close.

Dollar Basket
Friday's second consecutive lower close confirms Thursday's breakout, now requiring there to be at least one more lower close. It need not be consecutive, so an immediate bounce would likely fail.

Dec Contract EC; (NYSEARCA:FXE)
Friday's second consecutive higher close confirms Thursday's breakout, now requiring there to be at least one more higher close. It need not be consecutive, so an immediate dip would likely recover.

Feb Contract GC; (NYSEARCA:GLD)
Friday's volatility rivaled Wednesday's range. A fresh low was probed down to 1210.00, reacting back up to 1245.00 on the employment situation report. Regardless of the volatility, closing above 1230.50 was the minimum requirement to maintain the bottoming effort - it was still being tested at the close.

Mar Contract SI; (NYSEARCA:SLV)
Reaction to Friday's employment situation report spiked down momentarily before returning to essentially unchanged, ranging narrowly into the weekend. Almost any initial strength would be credible for trending sharply higher intraday.

30-year Treasury
Dec Contract US; (NYSEARCA:TLT)
The knee-jerk reaction to Friday's employment situation report spiked to a fresh low at 128-01 and then spiked back up to 129-16 resistance, all within the context of ranging around the 128-29 prior low. There is still no sign of reversing momentum up.

Crude Oil
Jan Contract CL; (NYSEARCA:USO)
Flat-to-higher ranging remained above 96.50 to keep intact the 98.35 target. Closing above 98.35 would next target 101.50.

Natural Gas
Extending higher Friday attacked the 4.25 target to within a nickel before reacting down. The reaction down needed only to close positive to confirm Thursday's breakout.

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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No positions in stocks mentioned.
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