Divergences between open interest and price generally fall into three types. This time, $US saw open interest rise while price fell (24-hour open interest: +48.07%, price: -33.63%):
Open interest rises, price stays flat: Long and short positions are both growing, suggesting a buildup; volatility may increase later.
Open interest rises, price falls: New short positions may be pushing the price down, though an overcrowded short trade could also trigger a rebound.
Open interest falls, price rises: Often driven by short covering; whether the rally has staying power depends on fresh money following through.
Open interest is currently worth about $11.32 million. What do you think?
Open interest rises, price stays flat: Long and short positions are both growing, suggesting a buildup; volatility may increase later.
Open interest rises, price falls: New short positions may be pushing the price down, though an overcrowded short trade could also trigger a rebound.
Open interest falls, price rises: Often driven by short covering; whether the rally has staying power depends on fresh money following through.
Open interest is currently worth about $11.32 million. What do you think?