While prices continued to push higher following yesterday’s rally, they have backed off of those highs, although they are trending higher again as I am putting this chart and report together. The overhead gap was filled, and the overnight lows were tested again as well, only to see prices start trending higher again. This looks like a mixed range day at the moment, although prices are currently trading higher than yesterday’s high and close.
While this could end up as a range day, it will not surprise me if the rally continues before the day is over. For now, I would call this a range day, but the bias at the moment is up. How prices react as they test the former highs will likely tell the tale in the end. If the resistance continues to hold, we will probably see mixed trading and a range day or maybe even another test of the lows. However, if the resistance does not hold, the rally will probably continue moving higher.
The trend is up for the moment, just respect the overhead resistance as prices approach those price levels. Let the price action prove if that resistance will hold or give way first. If the trend continues to move higher, stay with it. If not, treat this like a range day until we see otherwise.
Note that yesterday was rollover day, so we will be rolling over to the September contract soon. The volume is still in the June contract this morning, so I am trading June this morning and will roll to September next week.
