After a ten percent decline what did you expect?— I get a kick out of traders, with the bears astonished that prices did not collapse another ten yesterday. Sorry, declines like that need a time to confirm (or consolidate) and yesterday represented the market taking a moment to breath and figure out the next move. Catalysts that send a commodity market down 10% in a day are not usually followed by the event causing another 10% decline– normally the market needs to digest the first event.
The action has provided a near term support zone (yesterday lows) and a short term resistance area (gap from Monday)– would play that range until we find out if there is another catalyst to be defined.
