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Short-Covering Boosts August Ahead of Weekend
The futures market rebounded Friday, recapturing some of thelosses registered earlier in the week as light position squaringearly in the day gave way to moderated short-covering ahead of theweekend. That left the August contract above the critical $2.00level, closing up 8.3 cents at $2.031.
A New York broker pointed to the rising open interest figure thelast few days as evidence there has been fresh selling on the movedown this week. “Anytime you see such a substantial move in onedirection, you have to be wary of the whipsaw effect on Friday,” hesaid.
An analyst feels the market is experiencing a technical bounceamid the larger scale downtrend. “This correction looks as if itcould last through the August settlement on Wednesday, however theshoulder months are going to have a tough time following August’slead. The mentality in the market right now is that September,October, and November are guilty [of lower prices] until proveninnocent.”
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