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Gold Could Extend Rally, Move Sharply Higher, If It Doesn't Hesitate Tuesday

Rod David

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: Gold's rally Sunday night made good on Friday's warning to bears. The 38.2% retracement back to Friday's lows keeps the door wide open to extending the rally sharply higher Tuesday.

Dollar Basket
Jun Contract DX; (UUP), (UDN)
Monday's probe of fresh highs up to 83.05 was reversed back down to test 82.80 and maintain the potential for resuming the decline to 81.40.

[More from Minyanville.com: Was Gold's Opening Surge Friday Morning a Glimpse of Things to Come? ]

Jun Contract EC; (FXE)
Monday's test of 1.3020 support held, but the rally's resumption to at least test 1.3200 still requires extending above 1.3105.

[More from Minyanville.com: Gold Trading: Is This the Pause That Refreshes? ]

Apr Contract GC; (GLD)
Friday's "warning shot across the bow" above 1395.00-1400.00 was followed by Sunday night's direct hit that took price up sharply to attack 1441.00 before the open. The regular session's dip held 1418.00-1420.00 and back above 1432.50 should now resume the rally through 1441.00 to 1456.00.

May Contract SI; (SLV)
Monday's gap up back to 23.55 held as resistance through the day, while 23.25 held as support, allowing the rally to 24.15 to resume if there is no further delay or dip.

30-Year Treasury
Mar Contract US; (TLT)
Monday's retest of the 148-19prior high held the 148-00 pullback limit to maintain potential up to 149-14.

Crude Oil
Apr Contract CL; (USO)
Monday's gap up filled the gap back to last Tuesday's 89.00 close. Its intraday reaction down into negative territory was recovered back to the morning's highs, suggesting that 91.05 would be tested next.

Natural Gas
Apr Contract NG; (UNG), (UNL)
Friday's failure to confirm Thursday's surge allowed Monday's gap down, which retraced a healthy 61.8% of the breakout down to 4.26. Back above 4.35 would resume the breakout.
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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