Have been looking for a serious test of support zones after last week’s continuous gains in price — largely due to late shorts getting gutted. As discussed in the Weekly section this past weekend, the gains last week were primarily fueled by open interest declines hence short covering. Now the bears seek to control the movement by once again establishing new lows. In the Weekly section, there was a discussion of how the market seemed to be sending a message that perhaps a near term significant low had been achieved, now a base for a Q2 rally was in place. We will get this hypothesis confirmed or rebuked in the coming days. The market will be defining its intentions shortly.
Major Support: $2.00, $1.795-$1.766 Minor Support: $2.41- $2.34 Major Resistance$2.836, $3.00, $3.536, 3.595
