For the third time in as many weeks sellers came out with avengeance on Monday. The August contract opened below Friday’ssettle, and made little upward momentum before being pushed down 6cents to settle at $2.249 for the day. Traders agreed longliquidations met with some new technical selling pressured the spotmonth lower. Despite the price movement, estimated volume remaineda modest 44,989.

Today’s move was 101% technical in nature,” a broker said.”Friday’s settle below support at $2.32 was very bearish. It wasonly a matter of time before traders pushed [the August contract]even lower,” he continued. And push it lower they did with sellstops triggered at $2.285, $2.280, 2.250, and $2.245 en route to alow of $2.235.

Looking ahead, many analysts believe the $2.23-25 area couldprove to be pivotal today. The 40-day moving average is currently$2.229 and previous support exists at $2.25. A settle below $2.229could spark a wave of selling while a retracement above $2.25 couldreestablish support in the 2.235-25 area.

©Copyright 1998 Intelligence Prtegicexpansion in the Gulf of Mexico including the deep water area.

©Copyright 1998 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press,Inc.