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Will Gold's Rally Resume?

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.

Today's Highlight: Gold's wide two-day swing was relatively shallow compared to recent trending. But it was noteworthy for probing so far above one session's close, only to be rejected so far back under that session's lows. The shock to the system might not resume trending immediately, but the correction should be ending.

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Dollar Basket
Sep Contract DX; (UUP), (UDN)
Wednesday's bounce was too weak to end the decline, which resumed Thursday, and remains intact so long as 82.40 holds as resistance.

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Sep Contract EC; (FXE)
Wednesday's dip was too shallow to invalidate the rally, which resumed Thursday, and remains intact so long as 1.3195 holds as support.

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Aug Contract GC; (GLD)
Wednesday's tumble from Tuesday's post-close surge was extended only slightly Thursday before reversing well up into positive territory. The rally can resume, next targeting 1375.00, so long as 1312.50 now holds as support.

Sep Contract SI; (SLV)
Thursday's pre-open dip to 19.75 recovered back above 20.00 again, and should no longer delay recovering to 20.55 and higher if a deeper drop is going to be avoided.

30-year Treasury
Sep Contract US; (TLT)
Relatively narrow sideways ranging Thursday follows two consecutive falling sessions. The drop should resume without much delay, or by rejecting an early blip up.

Crude Oil
Sep Contract CL; (USO)
Yet more fresh lows Thursday attack $104 to within a dime, which launched a bounce back into positive territory testing 105.85. A second consecutive higher close Friday would confirm the key reversal. Otherwise, there is no requirement to trade any higher.

Natural Gas
Aug Contract CL; (UNG), (UNL)
Thursday's early test of the 3.73 buy signal was rejected by another dip attacking the upper-end of 3.50-3.60, whose retest is becoming likelier.
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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