Thursday 3 June 2010
While we have wanted to establish a long position, it has been a difficult
market with daily/intra day rallies followed by declines and declines followed
by unexpected rallies. This kind of activity is typical of a trading range
environment and not easy to trade.
Yesterday, there was very light volume, and while price was holding and
gradually working higher, it was doing so without evidence of demand
volume, plus, price was still under previous failed rally highs.
The late surge up showed that however weak demand was, sellers were
not present, either. The risk of trying to "pay up" by chasing the rally is
not good form. We are starting to see more evidence of a likely turning
point that will lead to a rally phase of some duration.
The more important failed high of 28 May is likely to give way. All we need
now is a place to get long. The reasons keep building.