In yesterday’s DTS we opined that failure to penetrate PDH suggests further consolidation within multi-day value area, with possible test of key support zone between 1859 – 1862. That scenario played out as scripted, with progressive and increasing selling pressure throughout the session, ultimately hitting stated lower price target zone at 1862 handle.
In early trade this morning, the key support zone between 1859 – 1862 continues to hold firm, with a slight reversal bounce developing at time of this writing (7:15 am ET). We will continue be watchful on any additional test of key support during the main Pit Session.
IF price continues to find responsive buyers near recent lows, this could setup a decent reversal, with price targeting 1869.25 (CPZ), upwards to 1872 – 74 (3DCPZ) zone.
Failure to hold support on any retest with increasing selling suggests a reassessment of bullish resolve; Violation of key support targets 1856, down through 1852 – 1850 zone, with deep extremes measuring 1844.25 – 1837.25 (OH MY!!)
Stay Nimble…Be Focused…ALWAYS USE STOPS!
I am courageous and I always act, even in the face of uncertainty and possible loss. Do not say, no fear. Feel the fear and act anyway. I may be frightened, but I still saddle up. I am not reckless. I act promptly in accordance with my methodology. I respect my calculations. I have a healthy respect and I balance that respect with my courage. I am an explorer. I am on a hero’s journey.