The 92.00 level has been a multi-year support range, with the commodity having tested it with a rebound on two occasions. This level (92.00, up to 100.00) also represents the previous multi-year breakout range which makes this a natural re-test. Considering the rebound this far today, one has to question whether the breakdown and reclaim is part of a false breakdown that could lead to a sharp upward reversal. Retaining it's ultra short term strength is key for this development to occur.
Lester Davids
Analyst: Unum Capital
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