Gold firms up; crude wants to recover

Midday markets update

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

Eurodollar Sep Contract (EC, ETF: (FXE)) Thursday’s bounce came after Wednesday’s second consecutive lower close had confirmed Tuesday’s breakout, requiring at least one future lower close. Friday’s drop fulfilled it. Thursday’s shallow interim bounce suggests the fresh low will resolve sooner rather than later. But fresh lows on a Friday suggest more to come on Monday morning, first.

Gold (COMEX:GCV14) Oct Contract (GC, ETF: (GLD)) Firming Friday from Thursday’s gap down closed above 1277.00 to suggest the drop was trying to bottom. But that doesn’t equate to momentum reversing up, and may simply be a position of strength to absorb the next downleg to 1265.00. And lower lows do remain in-play, absent a second consecutive higher close Monday.

Silver Sep Contract (SI, ETF: (SLV)) Monitoring for coinciding with Gold’s direction and relative price points, but not yet in degree, to determine whether this current leg can form a durable bottom.

30-year Treasury Sep Contract (US, ETF: (TLT)) Bouncing overnight to 140-16 resistance reacted down to test 139-24 on Yellen’s speech. Perhaps it was the outstanding attraction above that enabled the dip’s recovery to at least retest 140-16. Any higher would target the gap back to 141-02, likely to be tested up to 141-06.

Crude Oil (NYMEX:CLV14) Oct Contract (CL, ETF: (USO)) Another attack on the decline’s 92.90 target was recovered to test 93.50, a preliminary resistance to 94.00, whose recovery would launch an upleg targeting at least 96.00.

Natural Gas Sep Contract (NG, ETF: (UNG, UNL)) Stopping pessimistically short of touching 3.91 resistance didn’t prevent reacting down, but the reaction down held 3.83 support to maintain potential for launching a rally leg.

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

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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