Gold test's a new low, recovers

A daily summary of high-profile members of several complexes.

Gold Dec Contract (GC, ETF: (GLD)): Gapping down to test a fresh low Thursday at $1,305.50 per ounce was recovered well into positive territory, testing bounce limits at 1312.30 and 1315.70. Closing any higher would signal a much bigger detour on the way down to 1296.00-1297.00.

Silver Dec Contract (SI, ETF: (SLV)): Silver’s recent relative outperformace against gold helped it to avoid a fresh low Thursday, but its bounce up to $19.00 per ounce remained under the 19.15 prior week’s high that must hold to maintain near-term likelihood to retest overnight lows.

Crude oil Oct Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short)): Extending down sharply Thursday tested the next lower attraction at 43.45. The second consecutive lower close under a multi-session range now requires there eventually be at least a third lower close. Bounces should meanwhile hold any test of 43.90-44.20.

Natural gas Oct Contract (NG, ETF: (UNG, UNL)): Greeting Thursday’s EIA report from a position not of weakness didn’t prevent reacting down to retest the 2.82 sell signal, and probing it deeper than Tuesday’s test down to 2.78. A second consecutive lower close would confirm momentum reversing down. Otherwise, closing back above 2.88 would again be credible for extending higher.

Eurodollar Sep Contract (EC, ETF: (FXE, UUP)): Thursday’s gap down held at Tuesday’s opening low, before bouncing sharply into positive territory. A second consecutive higher close Friday would signal momentum reversing up. Otherwise, lower lows remain likely.

30-year Treasury Dec Contract (US, ETF: (TLT)): Gapping down sharply Thursday and extending to 169-06 was reversed back above Wednesday’s high to 170-27, as the sloppy, choppy range persisted ahead of Friday’s Employment Situation report. Closing above 170-02 could greet the news from a position of strength, but there otherwise remains no attractive setup.




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