Daily wrap: gold down but not out

Dollar Basket (September contract — DX, ETF: (UUP, UDN))

  • Flat to lower ranging didn’t threaten a reversal of the trend down Tuesday, but not yet extending the recent bounce does suggest that it has run its course.

Eurodollar (September contract — EC, ETF: (FXE))

  • Did the support test finally launch a bounce? Tuesday’s opening dip required organic sponsorship since no economic report was scheduled that might incite buyers. Its bounce did appear, but not a rally, leaving no room for delaying it past Wednesday’s open.

Gold (August contract — GC, ETF: (GLD)) (COMEX:GCN14)

  • The corrective bounce to 1326.00 was fulfilled to within 30 cents before reacting down sharply intraday, although 1313.00 held to avoid signaling momentum is reversing down.

Silver (September contract — SI, ETF: (SLV)) (COMEX:SIN14)

  • Monday’s test of 21.05 critical support reacted up Tuesday to 21.21 resistance, which failed and reversed down into negative territory to test 21.05. Closing down again Wednesday would signal a new downleg underway.

30-year Treasury (September contract — US, ETF: (TLT))

  • Monday’s bounce to 135-26 resistance extended 1 point higher without delay through 136-05 confirmation to signal the rally underway has potential to substantially higher highs targeting 137-22. Closing under 136-05 would suggest otherwise, and under 135-26 would reverse momentum down for a new and durable downleg.

Crude Oil (August contract — CL, ETF: (USO)) (NYMEX:CLN14)

  • Fresh lows testing 103.00 continued the downleg still targeting 102.50 and 101.00, which remain in-play so long as bounces now were to hold any test of 103.70 as resistance.

Natural Gas (July contract — NG, ETF: (UNG, UNL)) (NYMEX:NGN14)

  • The drop extended even deeper Tuesday, testing 4.15 support, which is an extension of the 4.38 support that held only momentarily last week. Being similar, closing above Tuesday’s 4.21 intraday high would also be able to signal a rally underway.
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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