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Precious Metals' Sideways Action Is Not Bearish -- Yet

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: Neither gold nor silver extended Friday's bounces Monday. That's not necessarily bearish, and doesn't undermine potential for extending higher Tuesday. But extending higher Tuesday would now be likely to peak.

Dollar Basket
Jun Contract DX; (UUP), (UDN)
Monday's bounce to 82.90 recognized the yen's continued decline, but there remains potential for the bounce to test 82.10-83.20 before reversing back down.

[More from Minyanville.com: Gold's Week-Ending Rally Confirms Thursday's Accumulation Signal ]

Jun Contract EC; (FXE)
Ranging narrowly Monday as the spotlight moved to the yen kept alive potential for extending the bounce.

[More from Minyanville.com: Too Much Gold Selling to Suddenly Bottom? ]

Apr Contract GC; (GLD)
Monday's pullback to 1566.60 did not produce a second consecutive higher close that would have confirmed Friday's close above 1575.00 was extending. But neither did it reverse momentum down, leaving the door open to fresh highs Tuesday.

[More from Minyanville.com: Next Long-Term Turning Point in Gold May Be a Major Bottom ]

May Contract SI; (SLV)
Monday's narrow sideways ranging did not confirm momentum had reversed up. Almost any immediate trending at Tuesday's open should be short-lived, and reversed more substantially in the opposite direction.

30-year Treasury
Mar Contract US; (TLT)
Friday's probe of 147-26/148-00 had held as resistance through the close, and Monday's opening gap down tested the 147-14 pullback limit

Crude Oil
Apr Contract CL; (USO)
Sunday night's attack on 93.75-94.15 resistance was retraced into Monday's open. Recovering back up to 93.25 was enough only to probe recent highs, and not to reverse momentum back up.

Natural Gas
Apr Contract NG; (UNG), (UNL)
Despite extending higher initially Monday to 4.18, a reversal back into negative territory avoided confirming Friday's breakout rally.
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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