The current rallies have no momentum in buying interests, may drag to test the stiff resistance at 41.84 levels (around 7DMA, see ).
Daily technicals suggest sell indications as the signaling clear convergence with the dipping prices (currently trending below 44 levels while articulating).
While slow have reached oversold zone but no traces of convincing %K crossover (currently %D line at 7.0081 & %K line at 10.8266), so overall we still see selling pressures in this commodity at the current stage.
While plotting weekly graph, “Gravestone Doji” and "Shooting star" appeared at peaks of 48.93 and 47.58 levels respectively that have evidenced effects already and signals more weakness as leading oscillators clearly converge on-going price dips.
Weekly converges downwards below 46 mark and oscillators entering into oversold trajectory with &D crossover which is deemed as weakness in this pair.
Current prices have slid well below DMAs as well as EMAs, while with crossover attempting to slide below zero which is zone again.
At current juncture contemplating above indications, on speculative grounds we recommend shorting near month for target towards $41.04 levels in near terms.
Writers in a contract are expected to maintain margins in order to open and maintain a short position.
These margin requirements are determined by the exchanges and would usually be ranging from 2 to 10% of the full value of the contract.