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Is Gold's Recovery Attempt Done?

Posted
7/12/2013 4:00:00 PM
By: Minyanville
Referenced Stocks:FXE;GLD;SLV;UDN;UUP

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: Gold's pattern this week of gap after gap after gap has all been gaps up -- that is, until the end, which gapped down. Was this a chink in the armor?

Dollar Basket
Jun Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Having dipped into Thursday's close, the 83.33 level attracted price back up into Friday's open. The balance of the session ranged narrowly sideways, with no active signal.

Eurodollar
Jun Contract EC; (NYSEARCA:FXE)
Thursday's late surge off of 1.3020 support was retraced entirely into Friday's open. The balance of the session ranged narrowly sideways within Thursday morning's range. There is no active signal, but a retest of Wednesday's 1.3200 high should hold and reverse back down.

Gold
Aug Contract GC; (NYSEARCA:GLD)
Despite gapping down, Friday's open held a test of 1268.00 and 1271.50 support. The balance of the session ranged narrowly in negative territory. A retest of 1268.00-1271.50 support should extend back down to 1249.00, and potentially begin another downleg.

Silver
Sep Contract SI; (NYSEARCA:SLV)
Friday's gap down under Thursday's intraday range did not completely reject the test of 20.00 resistance. But its immediate recovery may be the only way to avoid a deeper dip targeting 19.30, or even fresh lows.

30-year Treasury
Sep Contract US; (NYSEARCA:TLT)
Friday morning's bounce to 135-00 resistance was retraced to unchanged, as the attraction to fill the gap back down to Wednesday's gap continues to inhibit a recovery.

Crude Oil
Aug Contract CL; (NYSEARCA:USO)
The reaction down to 104.30 was itself retraced back up to 106.05 Friday, and could test 106.25-106.75 before the rally abandons a deeper correction to 102.45 or 103.25.

Natural Gas
Aug Contract CL; (NYSEARCA:UNG, UNL)
Thursday's retest of 3.55-3.60 support was rejected again, but Friday's surge stopped short of the 3.73 buy signal.


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 .