The March contract is trying to re-establish itself to the upside, with commercial selling and fund buying squaring off around the 55.00 area. It appears that breaking above Friday's high at 55.15 is necessary to pull the contract into a new buying phase from the funds. Indeed we continue to see the greater range from 57.00 down to 53.00 in general.
Momentum is around neutral at 54.53 on the RSI, whilst the moving averages (9 EMA and 50 SMA) are still converging, but March has now closed above the 9 day, with the average sloping back up. At this stage we feel that Friday's low is for the time being an extreme to the downside, and the market looks positioned to test higher ground in this range near term.
marketing@alchempro.com
