Gold recovers from lows

Today’s Highlight


Gold’s wild swing recovered from sharply lower lows. The brevity of its depression doesn’t make the intraday recovery much likelier to extend much higher for much longer, but it does suggest there is a perception of value below, and not of risk, which would be defended on further attacks.
 

Dollar Basket (NYBOT:DXU14)

Tuesday’s bounce to 80.75 is significant resistance that recovering would target a retest of the 1-1/2 week old high, before being able to launch a new downleg under 80.45.
 

Eurodollar (CME:GEU14)

Monday’s bounce to 1.3580 had stopped short of reversing momentum up. The door was left open to probing fresh lows, which Tuesday’s drop made likelier, but did not signal was in-play.


Gold
(COMEX:GCQ14)

Dropping sharply overnight gapped down significantly to 1258.00, a 61.8% retracement from Monday’s high back to June’s lows. It was almost all recovered to attack 1274.00 resistance. The bounce could extend to 1278.00 before reversing back under 1270.00 and 1267.70 to signal the drop had resumed. Closing back above 1278.00 would signal a corrective dip had just ended, and a new rally leg was underway.


Silver
(COMEX:SIN14)

Having neutralized both upside attractions on Monday, Tuesday’s open gapped down and extended lower to 19.45 support. Reacting up immediately extended back to Monday’s 19.72 intraday highs, potentially targeting a retest of 19.82 and higher.


30-year Treasury


Despite the bounce testing only 136-10 resistance and not 136-22, Tuesday’s early drop extended down intraday to attack 135-00. A second consecutive lower close on Wednesday would confirm a new downleg is underway.


Crude Oil
(NYMEX:CLN14)

Sliding overnight to attack 106.00 support held through the morning, suggesting that the narrow range’s first break was false, and that at least a probe of fresh fish should be obvious shortly. A second consecutive lower close Monday would be bearish.


Natural Gas
(NYMEX:NGN14)

Tuesday’s test of 4.71 support extended the test already underway through Monday’s close. There is nothing bearish about the test, only the growing potential for a detour down to 4.61 before resuming the rally.

About the Author
Rod David

Rod David develops analytical techniques that are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He primarily analyzes S&Ps, generating several round-turn candidates daily. Rod publishes "Trading Plan" and more each session at the blog http://IfThenSignals.com.

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