At $4.02, the upside momentum appears to be waning, with the commodity possibly developing a short term top, setting up a short/sell and a reversal of our initial 16 April long at the $2.66 level.
- Overextended vs it’s 200-day moving average (+34%)
- Break of 1st tier incline support
- Breakdown of 7-day RSI incline supporting extending back to 12 March (now trading at 48, a shift from ‘strong’ to ‘neutral’.
Sell/Short: $4.02, or higher if it rebounds intraday
Note: The pullback is possibly a back-test of the $3.30 breakout level, which may be tested (or near this area) before continuing to move higher over the long term.