Daily Moving Averages: 21, 55, & 100:3.702, 3.562, 3.253
Weekly Moving Averages: 21, 55, & 100: 3.222, 2.842, 3.410
The forecast for Monday was for lower prices and that was amply confirmed with the gap lower.
- The downside pivot that was needed to break was 3.50.
- Moderate temperatures have traders asking themselves, will this be another 2011-2012 winter where mild weather was the norm.
- It is likely that Jan will have minor resistance at that level for Tuesday, but the gap fill is at 3.535 to 3.54.
- We continue to look for Jan to test the key downside pivot of 3.35. It is possible to breach that level marginally as there is important pattern support at 3.32.
- However, below 3.32 will suggest that a run at the large continuation chart gap from September will be addressed. This gap begins at 3.19 and has its bottom at 3.070.
- We are a seller of the rally. This will be at 3.50 with a protective stop above 3.52.
- Note that the 100 DMA is found at 3.25.