Mid-day look at gold, crude and Treasuries

Gold Apr Contract ( jUN ,  ETF: (GLD))
Gapping up and trending higher Tuesday above 1331.00 and 1335.50 have started to signal a bigger bounce underway. Final confirmation above 1341.00 is only $1 higher. Regardless, the low’s Island pattern suggests the rally is only temporary.

Eurodollar Mar Contract (EC, ETF: (FXE, UUP))
Bouncing to higher prior lows at 1.2345 didn’t resolve down under 1.2300 to resume the decline, and instead extended to the next higher objective at 1.2430 Tuesday. There is no bearish reason for probing any higher before resuming the decline.

Silver May Contract (SI, ETF: (SLV))
Tuesday’s gap up above 16.50-16.55 extended higher to close above 16.75. A second consecutive higher close on Wednesday would confirm 17.50 is in-play. Otherwise, back under 16.50 would signal the interim bounce had ended and that new lows under 16.25 are in-play.

30-year Treasury Jun Contract (US, ETF: (TLT))
Dipping to the 142-24 sell signal only reacted up to test 143-22, greeting Wednesday’s ADP report not from a position of weakness.

Crude Oil Apr Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Extending Monday’s bounce overnight to attack 63.30 was retraced back into negative territory Tuesday to test the 62.25 sell signal. Avoiding a second consecutive higher close above 61.35 has kept alive the potential for re-triggering 62.25 and resuming the original decline.

Natural Gas May Contract (NG, ETF: (UNG, UNL))
Relentless testing of 2.74 resistance finally broke higher, albeit short of 2.80 which is the limit for a blip-up to reverse down sharply on the way to at least temporarily probing fresh lows for a bottom to form.

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.