September tried to rally…recall that a continuation gap between $2.836 – $2.859 was expected to present significant resistance, but failed at the 10 – day SMA ($2.810) well short of filling the gap. That failed rally…with the lowest volume since late April, suggested a test of recent lows was in the cards. It did not take long. That test came with increasing volume but offers dried up as soon September traded through August’s pre expiration July low ($2.616 v $2.620). Another test on Friday was no more successful. After a trade to $2.617 September recovered to end the week at $2.662.
A modest recovery from that quick lower daily low and a new low daily close ($2.640 on 08/06, the lowest since April 28th) left a short – term bullish momentum divergence. The recovery triggered by the divergence (or vice versa) was minimal before the weekly close…which was lower, the lowest since the Friday before May expiration.
