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Gold Rally Continues to Suggest Bigger Move Ahead


And it could still be a much, much bigger move down.

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: Was today's gold surge to fresh highs the trending predicted by recent patterns? Probably not. Either its trending will extend further into the weekend, or else a steep reversal down will make Thursday's rally seem like a rounding error.

Dollar Basket
The pullback extended Thursday from a recent test of the 84.45 buy signal. Unless 83.40 were recovered into the weekend, the next lower support under 83.15 is 82.60, where another rally effort would become likely.

Jun Contract EC; (NYSEARCA:FXE)
1.2955 resistance was broken Thursday to put into play 1.3110, unless 1.2955 were broken as support without delay into the weekend.

Apr Contract GC; (NYSEARCA:GLD)
Thursday's break above 1398.50 trended sharply to probe above 1414.30 by $4.40 to 1417.70. Closing back under 1409.30 would signal buyers gained no traction for the effort, and that momentum was reversing down. There is otherwise potential for extending to 1430.00.

May Contract SI; (NYSEARCA:SLV)
Thursday morning's rally attacked 23.25 resistance before reversing back down to 22.65. Any lower would target unfinished business below at 21.80, confirmed under 22.35.

30-year Treasury
Jun Contract US; (NYSEARCA:TLT)
A relatively narrow sideways range Thursday held tests of 142-00 resistance, still having room for extending up to 142-24 before considering anything more than a corrective bounce underway.

Crude Oil
Apr Contract CL; (NYSEARCA:USO)
Gapping down to probe fresh low down to 91.65 Thursday very quickly reacted back up sharply to 94.00, into positive territory. Back above 94.70 would still be likely to test 96.00 and probe higher to 98.10.

Natural Gas
The drop extended Thursday to test 4.05, instead of recovering above 4.22 to resume the rally. Immediately recovering 4.11 into the weekend would at least suggest the drop's momentum had ended, but not necessarily signal a new upleg underway.

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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