March continued on it's merry decline once again today, following Decembers lead amongst some heavy fund selling. New contract lows were set again today in every contract, much to the joy of the now heavily short spec. Trending indicators are still very bearish with the 9 day EMA now diverging lower away from the 50 day SMA.
Momentum wise the RSI is weak at 35.59 but not oversold. In fact it has not yet made any new lows which may pave the way for a divergence.
More pertinent is the behavior of the Dec contract as it goes into delivery this week. Many have it branded for a visit to 45.00 cents, and this week it has shown us nothing to suggest anything otherwise.
marketing@alchempro.com
