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GC #F Supply and possible test of low can be an excellent buying opportunity
Supply drove price lower by 7.1-points Yesterday as price was rejected from the axis line at 1288.70. We warned about this possibility in our previous assessment. The possibility exists the previous swing low at 1267.90 will be tested, before starting a material advance.
This last swing low on April the 23rd drew the highest number of contracts (1.9M) since the swing low on November the 13th last year, and the last bar at the April 23rd swing low with a possible spring action was on very low volume, closing off the low. If the spring plays out, price should not close below 1274.30 (Spring board), unless another deeper Spring action develops.
Buying pressure already developed, but there is still some significant Supply left in the market. Our first target is set at 1324.90. The best play will be to wait and see if and how the possible test of the last swing low plays out.
Watch out for a test to the 1274.30 area.
Link to post of The Technical Traders: