Will Crude Oil's Rally Resume?

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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: Crude should resume its rally early Wednesday if its higher targets remain intact. Interestingly, the timing coincides with weekly EIA data.

Dollar Basket
Jun Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Tuesday's second consecutive lower close was still testing Monday's intraday low, which undermines whether Monday's break was actually confirmed. This sort of a breakout cannot hesitate extending if it is valid, and is likely to react back up sharply above 83.00 if it is not.

Eurodollar
Jun Contract EC; (NYSEARCA:FXE)
Tuesday's second consecutive higher close was still testing Monday's intraday high, which undermines whether Monday's break was actually confirmed. This sort of a breakout cannot hesitate extending if it is valid, and is likely to react back down sharply under 1.3145 if it is not.

Gold
Aug Contract GC; (NYSEARCA:GLD)
That 1335.00 is relevant resistance was confirmed by Tuesday's narrow range around it. But ranging mostly under it, instead of above it, suggests the rally will resume before a deeper pullback can develop.

Silver
Sep Contract SI; (NYSEARCA:SLV)
Tuesday's gap down and attack on 20.00 support was "ineffectual pessimism." It does not signal momentum reversing down, regardless of there being unfinished business below at 18.00.

30-year Treasury
Sep Contract US; (NYSEARCA:TLT)
Monday's test of the 135-16 bounce limit was rejected by gapping down Tuesday. A second consecutive lower close would confirm the gap back down to 132-24 is in-play.

Crude Oil
Aug Contract CL; (NYSEARCA:USO)
Tuesday's gap down to test 106.00 reacted up to Monday afternoon's 107.35 high, trying to resume the rally, which would be triggered back above 107.70 and targeting 110.50.

Natural Gas
Aug Contract CL; (NYSEARCA:UNG), (NYSEARCA:UNL)
Monday's gap and drop were rejected by Tuesday's open that extended higher to test the 3.73 buy signal. A second consecutive higher close Wednesday would confirm.


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 .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Commodities

Referenced Stocks: FXE , GLD , SLV , UDN , UUP

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