We are at a key point at this 513 area in CZ. My upside target got stopped out overnight. I am thinking about buying more here, but it looks vulnerable to a continued sell off. There is a trend line going all the way back to our June Contract Lows. We are dancing around that trend line. Right now we have only one hour left before the market closes. These are holiday markets, which Thanksgiving around the corner on Thursday. Holiday markets can be quite volatile and subject to selling pressure. If the pros can lean on this thing and get us headed towards 5.00, they will do it. Conversely, if they can’t push it down there, and they are all short term shorts, we could have a tasty bounce higher.
If we settle below this trend line intersection at 5.13 we will see more liquidation. There are 400K spec longs out there. You can’t tell me they are not watching this trend-line. Settle below 5.13 and it will be sigh-oh-nar-ah bulls and hello a test of the 4.90-4.84 level.
That’s all I have to say.
Good trading.
