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Gold's Plunge Friday Fulfills Its Corrective Target

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Take a look at the intraday action in commodities.

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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: 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
Dec Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
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.

Eurodollar
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.

Gold
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.

Silver
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
Nov Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
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.
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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