The market has created a short term decision on extend the gains higher or consolidating some of the gains from Thursday and Friday’s dramatic move. That move started to challenge the high for the Dec contract (break it in late day light trade) and has all the elements to break above the old highs and set new high. Only problem with the bullish configuration is the over-bought condition of the market, the RSI on both the daily and weekly charts is extended into the extreme levels and the Bollinger Band study is beyond 2 standard deviations on the high side – confirming the over bought status. This market is at a crossroads of setting additional highs this week or consolidating the gains achieved with the Dec contract.
Major Support: $3.19, $3.101-$3.091, $3.047, $2.907, $2.822
Minor Support:$3.151, $2.98, $2.84
Major Resistance: $3.361-$3.370, $3.423, $3.516