Afternoon look at gold, crude, Treasuries & more

July 27, 2018 02:46 PM

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

Gold Aug Contract (GC, ETF: (GLD))
Extending Thursday’s drop overnight attacked the prior week’s $1,215.00 per oz. gap open low. Friday’s gap down bounced to fill the gap back up to Thursday’s close, which held as resistance. The lower attraction remains intact.

Silver Sep Contract (SI, ETF: (SLV))
15.40 support was retested again Friday, and held again, although chipping away at support for so long without launching an upleg makes the prior week’s low likely to be tested.

30-year Treasury Sep Contract (US, ETF: (TLT))
Thursday’s retest of Tuesday’s 142-21 low was pierced by several ticks in reaction to Friday’s GDP. The low held, but only to range sideways forming an otherwise inside day. The resemblance to stability is misleading since the burden of proof at this stage is for a rally to establish itself. The decline’s momentum meanwhile remains intact.

Crude oil Sep Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Regardless of its degree, Friday’s slide back down to $68.25 per barrel comes too late to invalidate Thursday’s confirmation of Wednesday’s breakout from a multi-session range. At least an eventual third higher close is required, potentially up to 71.75.

Natural Gas Sep Contract (NG, ETF: (UNG, UNL))
Friday’s gap up is too aggressive at this stage to qualify as launching a new upleg. Closing back under 2.75 would target a retest of the lows.

About the Author

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