The futures market traded lower for most of the day Thursdaybefore cratering in the last 10 minutes of the trading session,leaving the market at its lowest level in years. The Septembercontract plumbed the lowest of any of the contracts, printing lowsat $1.61 just after 3:00 EST. However, an average of all tradesduring the last 30 minutes produced a final settlement of $1.672, a9-cent loss for the day and 27.5 for the week.

A gulf trader feels this week’s market was rationalized byfundamentals, but set in motion by technicals factors. “Today’sprice decay was exactly what should happen to a market with suchdeteriorated fundamentals, but those same factors have been thereall along. As soon as we broke out of the sideways trading patternTuesday, the technical signals started flashing sell.”

Another source said the late day sell-off was due a longliquidation players hoping to profit on a short-covering rallybefore the close.

Looking ahead to October’s first day as the front month, viewsare mixed as to whether the downtrend is just picking up speed orcoming to a close. Susannah Hardesty of Energy Research and Tradingin Greencastle, IN., is cautiously looking for a bottom. Shetargets the $1.66 level as significant for October. “If October canhold above $1.66 for a couple of days then that will serve as ourfinal bottom of the summer low.” However, Hardesty warns that abreak of that level would extend the timing of the summer low to aslate as Sept. 11, on a move to as low as $1.55.

As of 6:00 EST the October contract was off an additional 3.6cents to $1.68, after briefly trading to a low of $1.663 in theevening Access session.

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