We closed ahead of the 3-day weekend last Friday with the following:

After a brief 10 cent “moon shot” to near 94 and then back to 84 in just 11 trading sessions, December futures just stumbled sideways between 84 and 85 for about a week and then dropped below 84 this week. Technically, it is a downside breakout of an inverted “flag” formation projecting another move for the spot contract down the length of the “flagpole”, i.e. 74 cents!

TodayΆs close confirmed similar risk in the December contract by breaking the last possible uptrend line one could draw, as shown here. Notice the next support zone is now at 79. If that canΆt hold, support at 74 is even weaker in the December and doesnΆt become readily apparent until 70!