Prices fell sharply following the EIA report, but held support at 2.659, posting only a 2.72 low for the session. 3.079 resistance went unchallenged for another day, with the market topping out at 2.92; so bias stays neutral until either is settlement breached. A move below 2.659 will shift the bias back for lower. On the other hand a move above support turned resistance at 3.255 will strongly suggest that a trend reversal has occurred. But as long as this resistance holds, the fall from 6.108 is still intact favoring a move to new low below 1.902. In which case, a drop could materialize to the1999 low of 1.62. So a break of 3.255 will now be an important sign of long term bottoming, while a downward breach of 2.659 could presage a test of recent lows. Consolidation should be contained, in the short, by a precarious equilibrium, between 3.079 and 2.659.
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