Daily Spot: Metals
A weekly summary of one complex, including daily updates of other developments elsewhere.[pay]
Gold Apr (GCJ) Who needs trending when the range is so wide. Tuesday’s open gapped up to attack the already tested 1342.50-1345.00 bounce target. It was retested after an interim dip to 1326.00. That’s quite the range. But it is no more predictive than Monday’s session, both being inside days compared to Friday’s range. A close above 1345.00 would target 1361.50 and 1376.00.
Dollar Basket Mar (DXH) New lows ignore two modestly bullish setups. Two-day reversal setups are less reliable than one-day setups. They can work, but Friday’s did not. Tuesday’s open gapped down to a new low and extended down into the afternoon. It’s a little surprising, because Monday’s “ineffectual pessimism” suggested that sellers lacked sponsorship. Failing to close lower Wednesday would confirm, and offer another opportunity to bottom.
30-year Treasury Mar (USH) This is the big one, round four. Monday’s intraday chipping away at 120’14 did lay the groundwork for extending down Tuesday. The 119’17 low retested the same level tested three times before it since Christmas. RSIs deteriorated there, so this leg still has a chance at extending down to become the leg that fulfills the 118’00 objective.
Crude Oil Mar (CLH) The door is open to drop. Tuesday’s gap down under the 91.45 and 91.30 sell signals wasn’t going to gain traction while leaving outstanding the gap back to Monday’s close. So the gap was filled, and another intraday downleg fell back under the morning’s lows. The next support is at 90.10 and 89.60. Closing back above 92.10-92.40 would signal the correction had become a rally leg targeting new highs.
Natural Gas Mar (NGH) Inside day with no bearing. Still no rally attempt able to gain traction without first testing 4.13. Closing above 4.55 would be compelling for long-entry.
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Daily Spot coverage schedule is: Currencies (Mon), Metals (Tue), Energies (Wed), Rates (Thu), Weekender (Fri).