Major Support: $2.52, $2.41-$2.38, $2.212-$2.207, $2.185,$2.12, $2.029 Minor Support: $2.633, $2.57, $2.33 Major Resistance: $2.716-$2.755, $2.884-$2.908, $2.984
Fascinating trade yesterday as prices capitulated after the release only to rebound. At first, it sure looked like prices were going to head back up to challenge the island gap discussed here all week — then the report release, prices fell down to my initial support area identified only to run back up and once again try to challenge the gap. They never got close to the gap but they did trade a higher high than before the release. Without the break through, prices once again melted down and ended the day just above the initial support identified. HUH— the island top has strong volume supporting the initial gap up, then strong volume the week of setting the high and now the market seems poised to trade a strong volume on the gap down week. This volume level is key to defining the island as a significant resistance zone. Today has a chance to have near term price implications. Should the market choose to rise and close that gap, closure of the gap will likely be accompanied with high volume, but obviously the gap will be gone and prices will be given the green light to extend. Should the market rally and fail at the gap — it too will likely have good volume and the weekly volume will confirm the island top as a significant obstacle for the next few weeks.
