Yesterdays support held and we got way more than we bargained for. My expectation was the 87 area, but we hit 22 this morning. Interesting that we cam right back to the channel break out at the close. The previous occasion we broke out, it was a false break. For now, support is right here at the 85 area and then significant support around the 55 area. Above, I would be watching 29, 47 and then the 72 area. Still not convinced that downside is over. Would not surprise me in the least if we get a stop sweep to last Friday's low before a move up. GL
Comment:
No real change in the price action. Friday's price action suggests that it is likely that the downside at least in the short term is over. Below 70 or so there is thin air till around 60 (gap) and area where there are likely still shorts trapped. If I had the ability to pull the levers, I would bring it down to the 68-70 area, and then rip to the 47 level at a minimum to cause more pain . Once the shorts puke, I would then bring it back down to the 55 area or below at 20 before takin git higher, if that is the plan. Levels below 68-70 above 47, 68-72.