As of 730 CST,
the market exhibited a Selling Tail, 97.80s-97.30s trading down from Thu Settlement, 97.23s, through Thu’s range toward 96.40, overnight inventory short.
Response at 96.30s and/or to the Selling Tail, 97.80s-97.30s, will be of focus.
As noted in last week’s review, the failure of 94.40s as resistance was key to understanding the most probable outcome of this week’s auction,
a buyside directional phase.
The market broke out early this week above the key structural resistance, 94.40s, trading toward the Wkly 2nd Std Dev before pulling back, encountering a buy response, confirming the breakout.
The market was in a buyside directional phase for the remainder of the week, auctioning back into the key overhead Feb Supply Cluster, 95s-98s, closing the week at/near the high, 97.25s.
Following this week’s breakout and directional phase, 97.25 s and the Feb cluster high, 98s, will be of focus as potential Stopping Point Levels. The Feb 95-98 cluster represents significant resting supply while the buyside controls the auction nearterm. IF 97.25s/98s hold, inventory adjustment toward 95s. IF 97.25s/98s fail, price discovery potential 98.50s/99.50s (Sep 2012 Supply Cluster 98.50s-100.50s).
- Recent Asset Class Performance. (Bespoke)