My apologies for no Daily yesterday — illness limited my computer time. The trade on Monday and yesterday (more so yesterday) did take on some of the characteristics of short covering— but will have to wait until open interest and volume are final. Explaining “some” is about the volume with the open interest at key levels of resistance and/or support– which yesterday broke through the $2.50 area finally (resistance) and closed above that level. That does not suggest the market is off to the rallies — rather just an adjustment in the trader’s eyes. We will know when the short covering rally has commenced when there is a strong volume day and open interest declines.
Major Support: $2.533, $2.422, $2.238
Major Resistance$3.536, 3.595, $3.63, $3.789, $4.128, $4.22-$4.39, $4.75-$4.825, $4.948