Afternoon look at gold, crude, Treasuries & more

August 6, 2018 02:21 PM

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

Gold Dec Contract (GC, ETF: (GLD))
Friday’s bounce was rejected Sunday night, greeting Monday’s open with a gap down to new lows. Bouncing into the noon hour held resistance at Friday’s low before ending the under all prior lows. Any bottoming pattern would require two days to form at this stage, and the trend otherwise remains down.

Silver Sep Contract (SI, ETF: (SLV))
Monday’s gap down to fresh lows for the decline still avoided filling the 3-week old gap down. Testing it Thursday night did not qualify, as the gap fill is required intraday.

30-year Treasury Sep Contract (US, ETF: (TLT))
Sunday night only ranged narrowly after Friday’s bounce to the 143-02 buy signal. It resolved up without further delay Monday morning. Two separate patterns are in-play, and a second consecutive higher close on Tuesday would target 144-12, potentially also 146-00.

Eurodollar Sep Contract (EC, ETF: (FXE, UUP))
Trending down throughout Friday made Monday likely to probe fresh lows at least momentarily. In fact, overnight weakness gapped down to fresh lows. Immediately bouncing did manage to touch Friday’s “higher prior lows,” so that retesting Monday’s lows could form a bottom. There is otherwise no bottoming pattern or signal.

Crude oil Sep Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Friday’s drop held its pullback limit, and already recovered the pullback’s origin Sunday night. A shallower dip Monday morning also held its pullback limit. The pattern has no bullish reason to further delay retesting last week’s Island pattern, which can be probed up to $71.75 per barrel.

Natural gas Sep Contract (NG, ETF: (UNG, UNL))
Sunday night’s weakness was recovered Monday morning, helping to confirm that Friday’s trending to fresh highs has reversed momentum up.

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