Author: Willis Bennett
Break Out Confirmed — So Far
Storage Can’t Induce Volatility
Nothing to Add From Yesterday and the Spot Nov Chart
Prices Seem “Comfortable” With Levels

Daily Continuous
Prices remained calm through the digestion process and nothing seems to stick out from a technical perspective on the Continuous chart above. That said the Spot Nov charts sheds some additional light on why the pause at $3.47-$3.48 area. Look at the spot November chart below below, the area was the high from trade in August on that brief test of resistance while Sept was prompt.

Spot November Contract
From this area there is little resistance in the spot chart until the early March highs.
Major Support: $2.608, $2.47, $2.00, $1.991-$1.96, $1.795-$1.766
Minor Support $3.04-$3.028, $2.84, $2.38-$2.26, $2.17
Major Resistance $3.42-$3.48, $3.536, 3.59
Digesting The Two Day Gains
Been Looking For It

It has taken three test of resistance provided by the summer highs at or just above $3.02, but prices finally the result that the market was hinting at through most of the summer. I doubt the market is going to get on a rocket up to $5.00 but this week should provide insight as to how the rally will behave. Due to over-bought conditions currently (see Weekly) would favor a retracement to the breakout level or in the vicinity.
Major Support:$2.83 $2.47, $2.00, $1.991-$1.96, $1.795-$1.766
Minor Support $3.02-$3.04,
Headed For The Q4 Rally
Break Out Confirmation

Daily Continuous
My apologies for missing publishing yesterday — did not set up the server properly– but you missed nothing as my diatribe just spoke about the failure of the move on Wednesday by closing under the key resistance area (after stopping me out on the run). Said the same thing going into the storage report that the selling around $3.00 had a close and low risk opportunity and yesterday proved that it was low risk. The one element that the market provided was the potential confirmation of a bias change with a high volume (daily) directional bias change. It is now imperative for the market to finally confirm this be holding most of the gains through the weekly close.
Major Support: $2.47, $2.00, $1.991-$1.96, $1.795-$1.766
Minor Support $2.84, $2.38-$2.26, $2.17
Major Resistance $3.24, $3.536, 3.59