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Has a Correction in Precious Metals Ended, or Is It Just Getting Started?


Take a look at the intraday action in commodities.

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: Precious metals plunged within hours of triggering their declines' resumptions Friday. They also tested or attacked targets. The question now is whether a correction has ended, or if it is just getting started.

Dollar Basket
Monday's ranging attacked the 79.90 buy signal, but never triggered it. No other signal was created.

Dec Contract EC; (NYSEARCA:FXE)
Relatively narrow ranging Monday continued to gravitate back into 1.2950-1.2975 resistance, without generating any new signal that might put 1.3100 back into play.

Dec Contract GC; (NYSEARCA:GLD)
Immediately following Friday's bearish close under 1760.00, Monday's plunge came within $3 of the decline's 1727.00 target. A $12-$13 reaction up did not alter the target, which remains a current attraction unless 1736.50 were recovered through the close.

Dec Contract SI; (NYSEARCA:SLV)
The drop's 33.00 target remained in-play throughout t last week. Perhaps its delay accounts for probing it so deeply Monday down to 32.57. Fresh lows should touch 32.25 so long as 33.25 is not recovered.

30-year Treasury
Dec Contract US; (NYSEARCA:TLT)
Closing back down at 149-16 Friday had signaled that the morning's test of 149-24 had overdone it by extending up to 150-07. Monday's gap down that extended to 149-00 confirmed as much. Bouncing back up to test 149-24 intraday still fell back down toward 149-00. A close under 148-16 is still needed to reverse momentum down.

Crude Oil
Nov Contract CL; (NYSEARCA:USO)
Monday's selling pressure finally broke under 91.20 support, extending down to test 89.80. An afternoon bounce probed back above 91.20 resistance. Extending higher immediately Tuesday would undermine sellers, and should extend higher to close above 93.00 if valid. Otherwise, closing back under 91.20 would signal that 87.00 is now in-play.

Natural Gas
Ranging narrowly Friday around the 3.58 target that had been met Thursday suggested the next higher target at 3.75 was in-play. If so, then Monday's gap down that extended lower to test 3.45 support should be rejected, retraced, and reversed without delay Tuesday.

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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