Daily Spot: Metals

A weekly summary of one complex, including daily updates of other developments elsewhere.[pay]

Gold Dec (GCZ) The 1342.00 pullback limit (green line) was not met Tuesday. Instead, after Sunday night’s test of the 1366.00 bounce limit (red line) resulted in closing negative Monday, Tuesday’s session was an inside day.

The pullback might yet extend down to 1342.00 where another upleg could be launched, with potential for filling the gap back up to 1372.00 (circled green). Regardless of the intraday high, retesting 1366.00 first would find buyers insufficiently refueled to avoid a new downleg.

Dollar Basket Dec (DXZ) Still aiming for 76.65 pullback target, which became much likelier due to Monday’s break to new relative lows.

30-year Treasury Dec (USZ) Bounced back to its 131’25 sell signal that was already confirmed. FOMC news is expected to bullish for bonds, and rejecting the sell signal would also be bullish. Otherwise, a “sell the news” scenario is likely.Crude Oil Nov (CLZ) Narrow ranging around the recently filled 83.80 gap Tuesday suggests it only neutralized unfinished business, and was not bullish. That doesn’t preclude visiting new highs above 84.00 before finally beginning a downleg.

Natural Gas Nov (NGZ) Tuesday morning’s dip to 3.74 represented the absolute lower-end of noise around the 3.83-3.84 61.8% pullback limit. Tuesday’s close above 3.83-3.84 confirmed the test had held. The rally’s next upleg is free to begin Wednesday afternoon or Thursday morning.

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Daily Spot coverage schedule is: Currencies (Mon), Metals (Tue), Energies (Wed), Rates (Thu), Softs (Fri, coming).