A down-crash is possible for gold

Gold Feb Contract (GC, ETF: (GLD))
Monday’s first session not to probe a prior session’s high was followed by overnight weakness that attacked the $1308.85 per ounce sell signal. Extending lower without delay could also accelerate into a down-crash.

Eurodollar Mar Contract (EC, ETF: (FXE, UUP))
Gapping down again Tuesday without recovering intraday confirms Monday’s break under the 1.2060 sell signal. Bouncing first to fill the gap back up to Friday’s 1.2100 close would be likely to reverse back down more substantially. But first extending down to lower prior highs at 1.1950 would have a better chance at launching a new rally leg.

Silver Mar Contract (SI, ETF: (SLV))
Overnight weakness retested Monday’s probe of last week’s lows, actually touching the $16.95 per ounce sell signal, which held to avoid triggering a reversal.

30-year Treasury Mar Contract (US, ETF: (TLT))
Already sitting at or under up trending pivotal support for the second time since it had formed, its immediate rejection at Tuesday’s open was the only bullish path higher. But overnight weakness suggested otherwise, and the morning dipped sharply back to and through last month’s 150-14 prior low to at least 150-06.

Crude Oil Feb Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
There was no bullish reason to retest $61.10 per barrel as support, or to further delay resuming the rally targeting 64.2564.75. The overnight blip-up to 62.55 wasn’t retested immediately, but eventually, Tuesday morning start probing above it. Extending higher through the afternoon attacked 63.25.

Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
Monday’s dip had filled the gap back down to Friday’s close, so that a close above $2.86 per thousand cubic feet would be that much more reliable for launching a durable rally leg. Tuesday morning’s brief tests eventually probed more than a nickel higher to trigger the buy signal.

About the Author

Rod David develops analytical techniques that are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He primarily analyzes S&Ps, generating several round-turn candidates daily. Rod publishes “Trading Plan” and more each session at the blog http://IfThenSignals.com.