U.S. Markets close in 3 hrs 36 mins

Precious Metals Have Reached an Important Crossroads

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.

[More from Minyanville.com: American International Group Surge Attracts Bullish Traders ]

Today's Highlight: Silver's fresh low Monday must be rejected immediately to even begin suggesting that last week's bottoming effort can resume. Meanwhile, any delay to gold extending higher would be bearish. So, both precious metals falling in unison Tuesday would be appropriate if recoveries are going to be avoided.

Dollar Basket
Jun Contract DX; (UUP), (UDN)
Monday's drop back to last Monday-Tuesday's 82.90 lows retraced 61.8% of the rally to last week's high, so there is no reason to further delay resuming the rally to retest last week's high.

[More from Minyanville.com: Silver's 'Inside Day' Keeps the Possibility of a Rally Alive ]

Jun Contract EC; (FXE)
Monday's bounce filled a gap back to last Tuesday's close, while also testing 1.2855 resistance, so the decline has no excuse not to resume immediately.

Apr Contract GC; (GLD)
Not immediately diving Monday does suggest that last week's pullbacks were absorbed. Now the burden of proof has shifted, and there is no reason to further delay launching an upleg. So, any further delay in rallying would again be bearish.

May Contract SI; (SLV)
Thursday's attack on Wednesday's low had left the door open to launching a recovery leg. Monday's probe under Wednesday's lows slammed it shut.

30-Year Treasury
Mar Contract US; (TLT)
Despite Monday's dip extending the pullback to 144-00, recovering intraday back to last week's highs still allows the rally to resume by gapping up.

Crude Oil
Apr Contract CL; (USO)
Monday's opening dip back under 96.00 was retraced almost entirely back above 97.00. Closing above 97.20 would confirm the leg targeting 99.00 remains intact.

Natural Gas
Apr Contract NG; (UNG), (UNL)
Thursday's dip had neutralized the attraction back to a lower gap. Its retest by Monday's gap down was recovered back into positive territory.
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.

Related Articles