Volumes for the X16 contract are still almost twice as high as volumes for the F17 contract but open interest went already higher for the F17 during the past week. We will roll over soon as well but still kept the X16 for this week.
Price made a 2% advance during the week which is not the end of the world but it did break our first resistance at 975 which is not what we were looking for. The most essential resistance at 994, however, remained intact and as long as that pivotal resistance has not been broken we keep our bear bias unchanged.
The most significant thing that we can see on this chart is that price has not been making any ardent moves during the past 6 to 7 weeks. After it impulsive decline from 1020 to 938 during the last week of August price has been bouncing between the 935/940 level on the downside and the, roughly, 990 zone on the upside without making any decisive moves. This, together with our pivotal resistance at 994 still being intact and the current operative EW count, is a very strong reason for us to keep our bear bias still in force. Nothing much has changed for our outlook in the chart except that we have moved on our price target in time a bit.
The pressure in the market is building up which means that we should expect a violent move on very short notice. Our preference is that same impulsive move will be to the downside with a potential of 10% decline from here. However, price is so close to the pivotal resistance that there is an increasing chance that the move will be up and that we will have to call for a long term tradable bottom in this market as well. So caution is to be added to caution and stops are to be tightened.