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.

Gold Sees Two Big Down Days, but Are They Enough?


Last Tuesday and Wednesday's narrow ranging won't be neutralized by price change alone.

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 extended drop Friday answered the question as to whether a one-day drop was sufficient to neutralize the selling pressure of the two-day consolidation that had preceded Thursday's drop. The answer was, "no." Is two days sufficient?

Dollar Basket
Two consecutive tests of the 81.45 pullback limit needed to rally immediately Friday to avoid extending into another downleg. Friday's gap up was retraced enough to fill the gap back to Thursday's close, and then recovered back to the open's highs. The balance of the session drifted back down to 81.45. The action isn't definitive for reversing momentum up, but at least it confirms this level's relevance, and the diminishing selling pressure.

Sep Contract EC; (NYSEARCA:FXE)
Friday's reaction down from recently attacking the 1.3333 bounce limit did not extend, but it did signal that resuming the rally would require new sponsorship.

Dec Contract GC; (NYSEARCA:GLD)
The drop extended to test 1304.50, testing August's original buy signal. Closing back above 1321.00 would trigger a bounce targeting 1341.00. Extending any lower would target 1288.00.

Dec Contract SI; (NYSEARCA:SLV)
Friday's fresh lows down to 21.42 were recovered back up to 21.70. Closing under 22.00 suggested the decline was extending, with potential into the teens. But, for now, at least one more lower close is likely.

30-Year Treasury
Dec Contract US; (NYSEARCA:TLT)
Thursday night's probe under 129-14 was already recovered by Friday's open, and the recovery extended intraday to retest 130-00 resistance. Closing almost any higher could trigger a rally well into the week.

Crude Oil
Oct Contract CL; (NYSEARCA:USO)
Friday's drop back to 107.25 was appropriate for having fulfilled the 108.75 bounce objective Thursday without putting into play any higher objective. The lowest new buy signal is now 108.75, although it would be suspicious to trigger Monday.

Natural Gas
An opening dip Friday was recovered and reversed into positive territory, testing a fresh high at 3.69. Fresh highs on a Friday in this market tend to extend at the week's start. Not extending higher Monday would be bearish.

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