The year’s trade commenced with a small gap between 2.547 and 2.626, and it appeared it would be filled when February retreated from the 20 Week SMA and narrowed the to 2.566. Surprisingly, price declines stop and closed not far off its low and remained open through the weekly close. February regained the continuous 20 week SMA, and spent the remainder of the week testing the continuation 50 day SMA, each day trading ended higher than it began suggesting increasing sponsorship.
The week’s gain were powered by significantly higher volume, highest in a months (see chart above). That said, the comparison should be viewed with a skeptical eye given the modest volume of the last two holiday shortened weeks.