Hope the bears got to read last week’s article on early winters—Prices took to the declines and worked lower during last week. It was interesting that the test below 2.40 was followed by a reversal higher on increasing volume…and extension of the gain to a higher weekly close. That reversal back through the 20 – week (chart above) with the highest weekly volume since week early August, is a strong indication that January has traded its low before expiration. With that in mind, the enormous amount of technical damage in the charts…including a monthly reversal on the January chart, violation of the low of a rare inside month in November and more than a dollar decline from the failed first trading day of November test of the October high suggests that the January contract will by having a difficult time gaining back any of the recent losses.
Monthly Continuous
Support: $2.425,$2.373, $2.255-$2.176 Minor Support: $2.162 Major Resistance: $$2.74-$2.789, $2.98-$3.05, Minor Resistance: $2.649, $2.798
