As noted in Thu’s analysis, focus on response to the Key Demand Area, 48.50s-48s, was key in Mon’s auction as short covering inventory adjustment drove price higher into Key Structural Resistance, 52.40s-51.50s. Focus into Tue’s auction on response to Mon’s Unsecured High, 52.25s.
- Short covering inventory adjustment off the Globex Buy Program Support Area at/near 50s.
- Buyside filling-in of the prior Selling Tail, 50.45s-50.65s, implied structural potential for price discovery higher.
- Key upside reference levels included the 26-27Mar Selling Tail, 51.65s-52.50s. Ultimately, the market traded to 52.25s.