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Today Subdued Gold and Currencies Provided the Calm Before the Storm


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: Currencies were suspiciously quiet again for a day with such wide gyrations among stocks. Is that an opportunity for gold's drop to prove it was a correction and form a bottom?

Dollar Basket
Monday's "inside day" barely touched Friday's close, and did not extend down to the 79.40 support whose break would resume the decline.

Dec Contract EC; (NYSEARCA:FXE)
Monday's firmer open stopped short of testing 1.3100, let alone recovering it, which would have put higher targets back into play.

Dec Contract GC; (NYSEARCA:GLD)
The bounce off of Friday's test of the 1717.00 target extended slightly higher Monday to test 1730.00. But not closing decisively above 1727.00 for two consecutive sessions all but requires retesting 1717.00.

Dec Contract SI; (NYSEARCA:SLV)
Monday did not repeat Friday's test of 32.00,. which has potential to form a bottom. But a retest of 32.00 may be needed before a bottom can complete.

30-year Treasury
Dec Contract US; (NYSEARCA:TLT)
The corrective bounce up to 147-21 Friday still had room up to 148-00, which Monday's gap down to 146-22 may have only interrupted. The balance of the session ranged around 147-00, which keeps alive potential for filling the gap back to Friday's close, and for extending higher to test 148-00.

Crude Oil
Dec Contract CL; (NYSEARCA:USO)
Friday's rejection of 93.00 resistance extended down further Monday to 88.55. The 87.00 target remains in-play so long as bounces now hold 89.80 as resistance.

Natural Gas
Despite Friday's second consecutive higher close above 3.50 having confirmed a bigger rally underway, targeting 3.75, Monday's overnight retest of Friday's 3.64 high was reversed sharply back down to 3.44. That was essentially the original level whose recovery signaled rally potential. It must hold as support, and then close above 3.55 to signal the rally had resumed.

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.
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