Gold has potential to soar

A daily summary of high-profile members of several complexes.

Dollar Basket September Contract (DX, ETF: (UUP, UDN)) Thursday’s gap up ranged narrowly sideways back to Wednesday’s 80.25 high, but no higher. Closing any higher would suggest a bigger bounce underway, but there is no active setup at this stage.

Eurodollar September Contract (EC, ETF: (FXE)) Delaying the bounce from last week’s lows had two effects. One effect was to make almost the entire move in one day. The other effect was to quickly collapse back to the bounce’s origin, back to last week’s lows. There is no actionable parameter at this stage.

Gold (COMEX:GCN14) August Contract (GC, ETF: (GLD)) Wednesday’s post-close surge to test $1,332.00 extended higher overnight to $1,346.00. Thursday’s reaction down avoided testing $1,332.00 as support by about $4. Holding it would maintain potential for extending to $1,352.00. Closing under $1,326.00 would signal that momentum was reversing down, likely to test and then break under $1,313.00.

Silver (COMEX:SIN14) September Contract (SI, ETF: (SLV)) Recent underperformance vs. gold was all but corrected in Wednesday night’s attack on $21.65. Back under $21.25 would signal the breakout was false, and closing back under $21.20 would start to signal the trend reversing down, targeting 20.95 and lower.

30-year Treasury  September Contract (US, ETF: (TLT)) The stock market’s overnight decline induced a flight-to-safety that fulfilled the 137-22 target. The balance of the session dipped to fill the gap back down to Wednesday’s 136-29 close. Closing any lower after Thursday would signal momentum is reversing down. Closing above 137-22 would no longer qualify the recent rally as only a corrective bounce.

Crude Oil (NYMEX:CLN14) August Contract (CL, ETF: (USO)) Slightly lower lows probed under $102.00 but bounced to test the $102.90 bounce limit. Closing back under drop’s initial $102.50 target would confirm $101.00 remains in-play.

Natural Gas (NYMEX:NGN14) July Contract (NG, ETF: (UNG, UNL)) Thursday’s EIA report doesn’t seem to have been responsible for inhibiting Wednesday’s buyers from recovering already. Wednesday’slow was retested by a fresh low, but not aggressively. Back above 4.21 would still trigger a recovery underway.

View a more detailed discussion of each chart at the end of today’s Market Wrap


Ed Note: Every day traders can listen to live, streaming squawk box commentary on coming directly from the S&P trading pits in Chicago.


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

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