Futures traders spent most of Monday in a “wait’n-see position”poised to react quickly if the market broke in either direction.However, no fresh news could be gleaned from yesterday’s market andas a result the market took what has become the path of leastresistance lately to move lower in quiet trade. The Septembercontract slipped 2.1 cents to $1.926.
Although Hurricane Bonnie in all likelihood will miss the Gulfof Mexico, sources point to the two new disturbances-one in theCaribbean Sea and the other in the Atlantic Ocean that are “keeping the bears at bay.” “Nobody wanted to be a buyer or a seller intoday’s market with the threat of hurricanes out there,” a gulftrader said.
Susannah Hardesty of Energy Research and Trading Inc., remainscautiously bearish this week despite the tropical storm activity.She noted the presence of a descending triangle formation in theSeptember charts marked by lower highs and stationary lows at$1.89-90 level. “Barring a hurricane related rally, the marketseems to be setting up for a break of the $1.89 level. If thathappens, it could initiate a wave of selling to the $1.73-78 areabefore expiration Thursday.”
Support for September exists at $1.89, with resistance coming at$1.99 and $2.05, a chartist advised.
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