This will likely throw a spanner in the works tomorrow, with the unexpected taking place, and with no real strong taker in place it is likely that the remainder of the December delivery will be quite weak. The next notice day will not be until Monday 27th due to the thanksgiving holiday this Thurs/Fri.
March has built itself into a new leg lower this week having penetrated the old sideways range between 51 and 54.00, however today's session was somewhat supportive, with a close above the last two session's highs.
Trending indicators are still bearish with the 9 day EMA providing resistance today, whilst the 50 day SMA is still trending lower. Momentum wise the low at 40.26, but has recently diverged from the new contract lows. This in time could be confirmed as a reversal signal.
The delivery of the December could well give some good indication for the future of March. If the delivery is weak and some significant new lows are made, then this will in turn become a lure for March.
marketing@alchempro.com
