Looking at the massive spike in prices on Monday in this market, one would have thought a significant bull rush was on. The truth was quite different however, as by the end of the day we finished with a massive shooting star.
The bottom of the candle was right at the 3.85-3.90 area, with the top of the candle being right at 4.05, which is obvious resistance on the chart. A break below the bottom of Monday’s range will signal a continuation towards the lows at 3.75 as the bulls got punished for buying this commodity and now are on the back foot. A break above 4.05 is needed to confirm a bull move, but that is very unlikely at this point. Downward pressure continues in this contract, and shorts are the preferred position.
More March 15, 2011 Analysis:
