Crude Oil: A Breakout Solidifies


The following are the latest daily summaries of my ongoing intraday coverage, providing context to interpret price action. Any prices listed are for a contract's current "front month." Their direction tends to correlate with any ETFs listed for each.

Today's Highlight: Now that crude oil has confirmed a breakout, a corrective dip or pause Wednesday would help to ensure a bigger rally underway.

[More from Crude Oil Came Alive Today ]

Dollar Basket
Jun Contract DX; (UUP), (UDN)
Sideways ranging Tuesday probed into the 83.20-83.40 area, but no upside traction was gained that would signal the rally has resumed.

[More from Bullish on US Economy but Worried About Extended Stock Rally? Play the US Dollar ]

Jun Contract EC; (FXE)
Tuesday's retest of Monday's lows almost qualifies as a second consecutive lower close to confirm a new downleg underway. Immediate follow-through Wednesday would be helpful.

Apr Contract GC; (GLD)
Tuesday's gap down retested 1601.00 and 1596.50, and almost closed under both, which would have signaled a new downleg underway.

May Contract SI; (SLV)
Tuesday's initial dip held 28.65 support again, preventing a new downleg from being signaled.

30-year Treasury
Mar Contract US; (TLT)
Another reaction down from 143-22 Tuesday was recovered almost enough to trigger its buy signal.

Crude Oil
Apr Contract CL; (USO)
Tuesday's second consecutive higher close above 94.00 attacked 96.00. The pattern doesn't require extending higher to 99.00 without delay, which would make the extension less durable than if Wednesday were to dip slightly first.

Natural Gas
Apr Contract NG; (UNG), (UNL)
Tuesday's bounce avoided a second consecutive lower close reacting down from the 4.00 target, which would have put into play 3.30-3.35.
Editor's note: Rod's analytical techniques are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He applies his techniques live intraday, primarily to S&P futures, at RodDavid .com.

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