The $2.08-10 level has been a magnet for November futures pricesthis week, and yesterday was no exception when buyer and sellersmatched up just about evenly to produce a $2.095 settle. Sourcessaid strong selling above $2.10 was enough to thwart the earlymomentum produced from follow-through buying carried over from theWednesday evening Access session. Despite the relatively narrow8-cent trading range, estimated volume registered a hefty 62,079.

Just as the market has found an apparent “comfort zone,” somefeel the market could be near a break out of its recent $2.03-16trading range. One source feels cash prices still hold the reins tothis market. “Cash will almost certainly come off more [Friday]. Itis just a question of how far they do, and how much futures follow.November should see a retest of the $2.03 level [this] morning, buta failure to break lower could prompt another run for the gap at$2.16-18.”

However, another source thinks the key question is, what are thefund groups going to do from here. He advised that in the lastCommitment of Traders report, the non-commercials held a manageablenet long position. “That gives them a good deal of flexibilitywhether to initiate shorts or to add to those longs,” he said.

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