After trading down to a new 3+ year price low of 2.805 in Friday’s early trade, the February 15 contract reversed back higher into the close settling the day at 3.003.
For the day, the February gained .114 or 3.9% but the market closed down for a sixth consecutive week losing 4 ticks during the holiday-shortened week.
A potentially bullish reversal bar (hammer candlestick) was posted on Friday which has been confirmed by higher trade today.
The first area of resistance which is the 10 day moving average at 3.135 has been broken in early trade today. If the contract holds over this average today, it could be further confirmation that a near term low has been set.
The 3.190-3.220 is the next area of resistance followed by 3.380-3.400.
If the February contract falls back under 3.135 support, the near term trend will turn back down with the current 3.072 overnight low being the first area of support followed by 3.000-3.010. Longer term support is the 2.805 contract low set on Friday.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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