With prices gaping lower last week, prices were destined to challenge support levels from the summer. Discussed the week’s action and the ramifications, in the Weekly section and now this week we will look at the expiration of the Nov contract. Guesses suggest that a range has developed between the two gaps but the gaps also provides great targets. Generally, there remains a bullish bias to trend as there are a series of higher lows with higher highs– but the December premium gives me pause for serious length.
Major Support: $2.82-$2.78, $2.74, $2.608, $2.47, $2.00, $1.991-$1.96, $1.795-$1.766 Minor Support $2.84, $2.38-$2.26, $2.17 Major Resistance $3.00, $3.185, $3.42-$3.48, $3.536, 3.59
