The technical picture is weak. Prices have fallen through a strong support range of 73- 75 cents, and below the 50-day and 100-day moving averages before finding support just above 69 cents, at the key 200-day moving average. This should hold temporarily.
However, with the sharp retreat by quarterly momentum, which is threatening to break below its own support and its equilibrium line, prices may well fall below 69 cents, moving down towards 63 cents. Resistance is now at 75 cents. The downmove is likely to be punctuated by rebounds. One thing is evident though, and that is the outperformance of the Oct-Jan period is over.
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