Gold's Week-Ending Rally Confirms Thursday's Accumulation Signal
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.
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Today's Highlight: While gold's sharp rally into the weekend does confirm that sellers had run out of steam, extending much higher without delay would be more in line with a corrective bounce, instead of patiently forming a bottom.
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Dollar Basket
Jun Contract DX; (UUP), (UDN)
Fresh lows Friday now require extending under 82.50 to maintain this downleg's 81.40 target.
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Eurodollar
Jun Contract EC; (FXE)
Friday's probe above 1.3010 signals a larger rally underway targeting 1.3325 so long as 1.2955 now holds as support.
Gold
Apr Contract GC; (GLD)
Only attacking 1547.50 overnight, Friday's NFP triggered a $22 spike up that eventually extended higher to 1579.50. The recovery targeting 1594.50 would be confirmed by a second consecutive higher close Monday, and back under 1570.00 would start to signal a fresh low being possible.
Silver
May Contract SI; (SLV)
Friday's early spike above 26.95 confirms that a bottom is forming, so any dips under 27.00 should hold through the close.
30-year Treasury
Mar Contract US; (TLT)
The 145-14 sell signal wasn't even threatened as the rally extended sharply higher Friday up to 148-09. The rally's momentum remains intact so long as 147-14 were to hold as support.
Crude Oil
Apr Contract CL; (USO)
Having failed to bounce enough Thursday to reverse momentum up, the pattern remained vulnerable to probing fresh lows. Friday's test of Thursday's low down to 92.00 closed easily within Thursday's range, suggesting that sellers are losing traction, but not necessarily that buyers are gaining any.
Natural Gas
Apr Contract NG; (UNG), (UNL)
Thursday's basis for a Pivot Reversal indicated that almost any higher high above 3.98 could extend sharply higher into and out of the weekend. Friday's open gapped up through it to and extended sharply higher intraday to fresh highs at 4.12. The rally remains intact so long as pullbacks now hold 4.05 as support.
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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