Jul 132010
 

The first potential short area was the 90.50/92.25 area which price reached after 10am.  There was a lot of buying in the area, but price was unable to advance beyond 1091 which was a strong line of resistance created by the June 23 daily high.  Price rotated down a full 3 points, enough to take out the stops of many of the resistance zone buyers.  On the next up rotation, price could not get past 1089.75.  In fact, someone was dumping a lot of contracts at 89.75 and kept the open contracts on the ask around 4000, about double most of the other bid open contracts.  This up rotation bar was about 70% selling with little buying to move price up.  Although price did not move back up towards the resistance area as much as we would like, the heavy selling was enough to take a bet on trading short.

 Posted by at 12:32 pm