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Technical Jockeying Buoys June Up 5.8 Cents

Technical Jockeying Buoys June Up 5.8 Cents

After touching the lowest level in almost two weeks early Monday, the June futures market was bid higher throughout the rest of the session as traders took profits from last week's sell-off. June finished up 5.8 cents for the day at $2.311, just off its $2.32 high.

Some were surprised by the market's ability to trend higher after last week's meltdown, but Sandy Trot of Trot Trading Corporation admitted to being an aggressive buyer Monday morning with his sights on filling in the chart gap created between $2.31 and $2.33 last week. "Once the momentum died, everyone was a buyer out there [Monday]," he said. He regretted dumping his long positions late yesterday, however, after seeing the price strength continue into last night's Access trading session. "Once the gap is filled, the $2.375 becomes the next target. I am a buyer if the market can move above that level. However, if the market isn't able to hold onto Access gains tomorrow I am a seller below $2.33 with a tight stop-loss order at $2.375 to limit the [upside] risk." Access trading finished last night with June up an additional 0.8 cents to $2.319.

The Pegasus Econometric group agrees the market could be positioning itself for a move higher and feels that if the June contract is able to climb above $2.33, it would signal an upward reversal on the daily chart, which would expose $2.36-41.5 as the next level of resistance.

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