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Gold's Plunge Friday Fulfills Its Corrective Target


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: Gold's premature bounce from attacking its first target made its lower target likely to be met. Friday's plunge got there, and bounced sharply from $1 below it. That should satisfy a correction. If it's a correction.

Dollar Basket
Thursday's recovery to 79.40 extended higher Friday to retest the prior Friday's close. Back under 79.40 would target a retest of 79.00. Closing above 79.90 would trigger a bigger rally underway.

Dec Contract EC; (NYSEARCA:FXE)
The reaction down from Wednesday's high extended a little lower Friday, which now requires Monday to recover 1.3100 before reinstating momentum for the 1.3200 and 1.3245 targets above.

Dec Contract GC; (NYSEARCA:GLD)
Thursday's close under Wednesday's 1744.00 low signaled the 1727.00 target's test was back in-play. The delay was compensated by also testing the 1717.00 target Friday. Recovering1727.00 would have signaled a corrective leg had ended. Closing back above 1736.50 is needed now to trigger a bigger rally.

Dec Contract SI; (NYSEARCA:SLV)
Friday's open gapped down under prior lows to test 32.00. No recovery is signaled, but there is potential for 32.00's test to hold as support and form a bottom.

30-year Treasury
Dec Contract US; (NYSEARCA:TLT)
The corrective bounce triggered above 147-04 Friday to put into play a test of 148-00.

Crude Oil
Dec Contract CL; (NYSEARCA:USO)
An early test of the 93.45 bounce limit Friday (basis Dec, 93.00 basis Nov) was rejected by yet a deeper intraday low down to 90.00. It reacted up like prior dips in this range, but then differed by retracing the reaction. The 90.00 close triggers the 91.65-91.95 break that puts into play 87.00.

Natural Gas
Thursday's surge through 3.50 extended higher without delay Friday for a second consecutive higher close that confirms a new rally leg is underway, targeting 3.75.

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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