Stronger close than I was expecting, but this market is just running along with little or no serious consolidation periods. Not sure if it will continue, but I am still expecting a period of consolidation taking prices down to $.20-$.30. The upcoming period of the year (Labor Day period) has been one of the weakest of the year historically. Should prices not conform to the period’s history — then it is likely we are headed significantly higher. The gains of the last few days have occurred on lower volume and declining open interest (not surprising with contract expiration) which is not supportive of building a base for extended rallies. Weekly RSI (lagging momentum indicator) is approaching extreme over bought levels and the weekly Bollinger Band study remains nearly 3 standard deviations over the 20 WK SMA (not sustainable over time). Be aware over the next week.
Major Support: $2.162, $2.089-$2.055, $2.029-$1.937, $1.86, $1.527, Minor Support:$$2.54-$2.51, $2.499-$2.43, 2.377, $2.255, $2.102, $1.975 Major Resistance:$2.588, $2.709, $2.74, $2.809
