While still suffering from whatever little kids spread amongst themselves, I hope you bear with this week’s Weekly analysis.
Last week in the Daily editions I mentioned several times about the potential of a short covering. Unfortunately, that did not happen at least not yet. Rather than a short covering rally failure to overcome the declining resistance triggered a high volume extension of the down trend through the November low ($2.669) for the seventh straight year (and 9 of the last 10 the November low has been violated during December) and support expected to be presented by the 200 – day SMA but did not happen. With still higher volume the highest volume day since the October high (678, 722 v 682,359 contracts, and before that the August high 805,853) January plunged to begin a test of substantial conventional support presented by the July/August/September lows, $2.463, $2.425, and $2.500, respectively. Check the Weekly chart below:
