With volume down even further Wednesday prices traded a very consolidated day. Prices opened at 1098.00 after a move up in the after hours trading, then traded a 6.75 point range for the day closing at 1097.75. This decreasing volume could give us the indication that price may be getting ready to turn back to the down side in the near future, as low volume moves up tend to set us up for high volume moves down as the lack of commitment cannot keep prices moving. With continued low volume we could see prices consolidate further, with no aggressive buyers or sellers there won’t be much action. However there are some news item up this week that may help to give this market some direction. Take note that we do have 3 open gaps to the downside to fill. I hope sooner than later.
Be ready to run. See you at the starting line!
Tuesday’s trading opened at 1083.50, gaping up 8 points through the long weekend. Prices moved down from open, trading to a low of 1079.50 where they could not move through the support and turned back to the upside. Futures then traded up for the rest of the day to hit a high of 1094.00 shortly before close and then relax slightly to close the day at 1092.50. Tuesday traded a 14.5 point range, on lighter than average volume. Futures traded about 1.6 million contracts through the day and price has now moved through our resistive trend line on the channel from Jan 14.
Watching for the move to 1100.00, if we move through the 1100 area we may see 1106 and 1112.50 as targets. On the lower side we could see a touch back to the 1083.50 level as well as to the two open gaps side by side at 1075.50 and 1076.50 from Feb 12 and 16th. Keep you eye on the ball. I’ll see you at the starting line!
Friday’s trading gaped down to open at 1064.75. Trading hit a low of 1060.00 early in the day and turned to head back towards the 1076.50 gap from Thursday’s close. Prices moved to a high of 1076.00 missing the gap by 2 ticks, then closed trading at 1075.50 after trading a 16 point range through the day.
Going into Tuesday we are watching 2 key price area’s for an indication to direction. Friday’s trading left us with a large hammer and with that we are watching the 1070 level. Prices have traded an up channel through the last week so a break through support would be a god indicator of a change back to the down side. On the high side we have seen price fighting with the 1079 level, looking to move but not finding the commitment to get through the resistance barrier there to break to the up side. Should we move through the 1079 level we could be looking to touch the 1093 area of resistance in the next couple days to see if there is the momentum required to move through and continue on.
