Gold extends rally

Midday markets update

A daily summary of high-profile members of several complexes. View a more detailed discussion of each chart at the end of today’s Market Wrap.

Eurodollar Sep Contract (EC, ETF: (FXE)) Wednesday’s fresh low underscored that Tuesday’s “ineffectual pessimism” did not equate to a buy signal. But it did create a favorable environment for bottoming, as does avoiding a second lower close Wednesday. And Wednesday’s gap down testing fresh lows was recovered into positive territory, suggesting that a bottom is forming.

Gold (COMEX:GCU14) Dec Contract (GC, ETF: (GLD)) The opening rally extended to test 1311.00, maintaining the relevant portion of the recovery. Apart from the pre-open blog post discussion, closing above 1313.00 would confirm a new rally leg underway.

Silver Sep Contract (SI, ETF: (SLV)) Tuesday’s plunge to 19.85 support did react up to recover 19.97 resistance, which can’t tolerate another dip in order to consider the decline as having ended.

30-year Treasury Sep Contract (US, ETF: (TLT)) Pre-open probing of 139-06 Wednesday fulfilled the minimum objective of a topping pattern. Its reaction filled the gap back down to what was Tuesday’s resistance at 138-16, as I described in this pre-open blog post. Closing back under 138-08 would essentially begin launching a new downleg, confirmed under 137-25. Back above 138-25 first would target 139-25.

Crude Oil Sep Contract (CL, ETF: (USO)) Wednesday’s fresh low suggests the decline will test 95.00 before bottoming, unless 97.85 were recovered without further delay throughThursday’s close.

Natural Gas Sep Contract (NG, ETF: (UNG, UNL)) Wednesday’s higher high up to 3.94 was a second consecutive confirming high above Tuesday’s breakout session. So long as 3.85 holds as support, a rally is underway targeting 4.28-4.34. Thursday’s EIA report must be negotiated first.



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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