Category: Daily Call

The action yesterday created an inside range from the range on Monday– bu the key was they did not melt down from the rally as they did last week and earlier in February. This is a bullish indication that prices may consolidate the gains and extend higher later in the month. As a trader- I would like to see the market retrace to the break zone last week at $2.90 and then see how it reacts. Continue to play this new mini-range between $3.00-$3.15 for now.

Major Support: $2.914-$2.886, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support: $3.00, $2.876, $2.694, $2.483, $2.162
Major Resistance: $3.12-$3.15, $3.251, $3.31, $3.396

Strong gains yesterday, confirming the gains from Sunday and Monday. Pardon my skepticism, but we have seen this kind of rally dwindle away in the next day. The question remains how much it retraces the gain and / or does it maintain the support levels. Further gains beyond resistance will set up for additional gains. Declines will take prices back to the old range trade.

Major Support: $2.914-$2.886, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.12-$3.15, $3.251, $3.31, $3.396

Price action ended the week on a positive note and opened on Sunday night with a solid run, confirmed on late Monday trade. While the continuous chart continues to show a range trade environment, the spot July chart is more constructive (as discussed in the Weekly section). The directional bias for July will be a battle and currently, the price remains near the top of the resistance zone.

Major Support: $2.914-$2.886, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.01-$3.042, $3.12-$3.15, $3.251, $3.31, $3.396

Jun expired on the higher side of the range and July quickly traded into the June expiration range. There remains a nickle spread between Jun and Jul and would expect a retracement into that range. The July chart looks more supportive than any of the recent monthly charts and will go into that on the weekend. For now — play the range– and have a great weekend as I will not be publishing a Daily on Friday.

Major Support: $2.883, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.01, $3.12, $3.251, $3.31, $3.396

The range trade continued with a slight extension for prices as options expired. The July contract continued to trade between $.06-$.07 premium to the June so now what happens to June may not extend to the July contract. What ever the variance to the June contract it would be wise to expect July to test some part of the expiration range as it takes over as prompt.

Major Support: $2.883, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.01, $3.12, $3.251, $3.31, $3.396

Prices gradually rallied during the day to close the small gap from the Sunday night open. No technical variance from what was discussed yesterday and on the Weekly portion of the website. Having some dental work tomorrow — as a result may not be able to write the Daily– and not sure it would make any sense.

Major Support: $2.883, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.01, $3.12, $3.251, $3.31, $3.396

Discussed last week that the trade would help “define” the expiration process this week. The failure of the rally (creating a weekly reversal — see the Weekly section) has assisted in determining the annual weakness surrounding Memorial Day Holiday. Prices on Sunday night do what they do best (create a narrative going into Monday) and have created a small gap in the weekly and daily charts. As mentioned last Monday on the rally — it will be interesting to see if this narrative remains through the day and expiration.

Major Support: $2.883, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.01, $3.12, $3.251, $3.31, $3.396

Apologies for no Daily in the email this a.m.– I am not technically trained in computers and had some internet issues while observing a hockey game. Would of been a waste of time as the market is just going to test the low side of the trade range going into expiration week as discussed yesterday.

Major Support: $2.883, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.01, $3.12, $3.251, $3.31, $3.396

As discussed yesterday that the prices were bound to test the break out area and that they did breaking below the $3.00 area yesterday. Perhaps, a new range is trying to form (basically between $2.90 – $3.10), we will have to wait to watch the action. There are four trade days before the expiration 3-day close and as mentioned, this will set up the expiration and the roll into July. Would expect this is the range to manage price into the close.

Major Support: $2.883, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.12, $3.251, $3.31, $3.396

Not surprising that after a rally that was provoked by short covering (breaking above the $3.00 level) prices would retrace back to the old resistance area that is now support ($3.00). Thank you to the subscribers that forwarded emails regarding the break above and the expectations going into the July contract as prompt. It will not be a straight action of rising prices onward with the July contract and as discussed yesterday, we need to watch how this sets up for expiration. The retracement to test the support yesterday is very healthy for the market now does it break back below short term support ($3.00) and for how long.

Major Support: $3.001, $2.883, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.12, $3.251, $3.31, $3.396