Holiday Week and Expiration Upon Us

Major Support: $2.212-$2.207, $2.185,$2.12, $2.029
Minor Support: $2.158
Major Resistance: $2.437, $2.48-$2.52, $2.716-$2.755, $2.884-$2.908, $2.984
Minor Resistance: $2.34

Here we go — light trade during Holiday periods is subject to above average volatility and we are seeing it last night with the opening well below last Friday’s close. It suggests that the bears who are still extended want to push the market down further but we saw in the CFTC data last week, there was not an extension of short positions, rather the report had the short position flat to the week before, but total open interest declined on Wed through Fri. That smells like short covering as prices were reasonable firm during the period in question. Yes the bears may try to attack the lows of the previous week ($2.158) but they will find buying at those levels in the February contract. Once again— expect volatility especially with the history over the last three years showing strength during the expiration process. The Daily will not be published in the Holiday period (Dec 24-26th) but I will try to have an update before expiration.

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