Wow– prices started to challenge the highs from December in the after market last evening climbing up to $5.345 where the highs from December were $5.496. A client asked how long will this continue – my response was “as long as the forecasts remain this bullish and there remains a significant short interest in the market”. According to the CME website-volume from Monday and Tuesday hit 1.52 million contracts and open interest fell 40,000+ contracts. The Tuesday trade will likely maintain a similar trend for those two elements.
All this buying has the market approaching slightly over bought status. While the RSI has some room left to rally the price run has challenged two standard deviation over the 20 week SMA (see chart below).
