Friday:
Price's retested the prior high set on Thursday, hitting the 930 range two times, showing a possible double top. Although I stated is a possibility for a corrective move on Friday. Prices made a second attempt at the high creating the double top, but did consider that the top may extend until May 11th. Here are my comments……
“The important ranges of 931 (930.21 actual High) with a violation there would see prices move two 940 range.”
“I see a possible change occur on May 9 or May 11 near the price ranges of 931 or 941.”
Traders need to understand that this is not a conspiracy or manipulation taking place is just survival of those that have already over extended themselves during the prior breakdown of this market. It is natural, if you have huge trading positions to need to move out of those positions into more profitable ones and minimize risk. There are also traders that are very aware of retracement levels, especially major retracement levels, where we found significant support and a valid short-term uptrend to take advantage of. This basic technical analysis and just as it is predictable that prices will rally off major retracement's. It is also predictable that this move will exhaust itself as buyers exhaust their funds and news becomes more difficult to overlook. It is still my feeling that traders are moving out or liquidating positions into this move, in hopes of protecting their downside risk.
Gannfann


