The breakdown that started the week before, gained momentum last week as prices closed just at or below the Q1 ’17 and Q1 ’18 lows. This key area around $2.55 will tell us the near term direction for prices. A further continuation of the declines, a daily close lower, will likely signal a coming test of the gap ($2.37) remaining from the premium associated with the November contract.
Weekly Continuation
Discussed a couple of weeks ago the two bias’ that exist in the market and they both remain. in place. While the declines have been swift a sudden (collapses usually are– whereas bull markets are slow and continuous). The declines can continue all the to $2. and slightly below to maintain the higher low aspect of that previous analysis.
