Daily Moving Averages: 21, 55, & 100:2.6996, 2.7671, 2.8632
Weekly Moving Averages: 21, 55, & 100: 2.8868, 2.9055, 2.8883
Although Jan marginally broke the minor upside pivot at 2.6350, it quickly returned to the negative pattern from last week.
- Jan should have another move to the downside that is likely to test 2.59.
- A break of 2.5850 will give Jan the possibility to see 2.5550 to 2.55.
- This market continues to be under pressure from the dual effects of increasing inventories and plunging demand.
- Although we wish to sell the rally on Tuesday, the pattern on the hourly chart suggests it will not rally much before its move to 2.59 or below is seen.
- The key upside pivot to the intraday chart is 2.64.
- There is minor resistance at 2.6050 to 2.61.
- The minor upside pivot is 2.6150.
- Although we wish to sell the rally, there is not a pivot close to a key resistance point in order to take the trade.