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Is It Time for Silver and Gold to Throw Around Their Weight Again?


Precious metals probed fresh lows today.

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 probed fresh lows as they further delayed retesting Friday's fresh highs. Wednesday's action actually suggests a deeper dip for more days.

Dollar Basket
Dec Contract DX; (UUP), (UDN)
Tuesday's shallow bounce nonetheless extended sharply at Wednesday's open, probing fresh recent highs. Back under 79.78 would trigger a bigger drop underway to 79.00 and then lower.

Dec Contract EC; (NYSEARCA:FXE)
Limiting Tuesday's dip to only a 61.8% retracement back to Monday's low didn't prevent gapping down to fresh lows Wednesday. But the moves are still related, and back above 1.2920 would target 1.3110 and then 1.3200.

Dec Contract GC; (NYSEARCA:GLD)
The third rejection of probing above 1760.00-1770.00 couldn't afford to delay recovering back to Friday's highs, or else a correction would be underway. Wednesday's drop to 1738.50 was deep enough to fulfill the correction, but it would be premature, so there is potential for extending down to 1727.00 and 1717.00.

Dec Contract SI; (NYSEARCA:SLV)
Tuesday's close was essentially flat with Monday's break to avoid confirming that momentum had reversed down. That didn't prevent probing fresh lows intraday down to 33.96, but it did help recover back into positive territory testing 33.96. That's not a buy signal, but it does reflect that sellers may be weak-handed, so only temporary.

30-year Treasury
Dec Contract US; (NYSEARCA:TLT)
The two-week rally from 144-17 extended sharply higher Wednesday. There is no active sell signal.

Crude Oil
Nov Contract CL; (NYSEARCA:USO)
The 89.75 target was met Wednesday, and held as support after being probed intraday by $1. The 87.00 target remains intact so long as bounces do not hold 90.20 as resistance.

Natural Gas
Tuesday's close at the 2.90 buy signal extended sharply higher Wednesday to 3.05. The 3.25 target remains intact so long as pullbacks now hold 3.00 as support.

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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