Major Support: $2.212-$2.207, $2.185,$2.12, $2.029 Major Resistance: $2.339, $2.366,$2.38, $2.398-$2.241, $2.49-$2.52, $2.643-$2.648, $2.72, $2.751
The trade continues to confuse this trader— expected additional
declines into the end of the week and they corrected a portion of the
gains. We are still in a range market between $2.18-$2.39 and that range
trade (some slight extensions) is likely to continue until the winter
becomes better defined. Wanted to show you a chart that should be a
cause for concern if you are shorting the market. It is clear that the
Managed Money short position is expecting price declines as they have
achieved historically large levels. Not to the level last August, when a
short covering rally ensued carrying prices to $2.70, but this level of
shorts may cause volatility if forced to cover.
