Near Term Trend: Positive
Friday’s Close: $49.11 (+ $18 cents)
UPDATE: Four weeks ago following the dip down to the $40.00 region, we stated, “At this juncture, the contract is oversold; expect a bounce toward $45.00”.
Subsequently the $40.00 region turned out to be the low, and our objective at $45.00 was met a week ago. In addition, this past week the contract bounced another $4.40 higher toward $49.70.
Buyers continue to unite in this area. However, if our internal resistance line is worth anything- resistance at $49.90 should have capped any further advance on Friday, and profit taking (selling) should be apparent at the start of this week.