Plenty of fireworks for the May contract this week, firstly falling to consecutive contract lows on Wednesday and Thursday, before attempting a bottoming formation today. The inability to hold highs today and the recent damage suggests to us that the path of least resistance remains to the downside.
RSI has been weak, though at 35.38 is not at oversold levels. Trend following moving averages are still in a bearish formation with the 9 day EMA falling quickly, now at 52.91 and well below the 50 day SMA. Next week should very well show the way, in terms of whether the support level around 51.50 holds up.
marketing@alchempro.com
