The short covering started on Monday as open interest decreased as prices rose, but yesterday was the big run and I don’t have confirmation from the CME– but I expect a significant amount of short open interest left the market. It really means little to the trader as I am waiting to see gains in open interest as prices rally. We have witnessed these types of rallies in the last year only to have prices reverse back lower once the short were eliminated. From my perspective — thankfully, I had stops in just above the resistance area mentioned yesterday– so damage was minimal. Now I want to wait and see how much leg this rally can have.
Major Support:, $2.00, $1.991-$1.96, $1.795-$1.766 Minor Support $3.00, $2.87, $2.62, $2.47, $2.38-$2.26, $2.17 Major Resistance: $3.16, $3.48, $3.536, 3.59, $3.65
