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Another Weather Collapse

Daily Continuous

Daily Continuous

Major Support: $3.059, $3.011,$2.852-$2.847, $2.797, $2.773, $2.723

Major Resistance: $3.153-$3.166,$3.21-$3.216, $3.231,$3.263

The market did not even need a bearish storage report to decline as prices traded down to $3.08 in the late night session and then expanded on those declines as the storage report was below the market expectations.  Welcome tho the world of trading on weather reports —lots of fun so long as you take the broader position.  Declines may continue today but the forecast change had to do with moderating the intensity of cold in the 11-15 range not the fact that it will still be low than average.  Techs say a move like yesterday will find support (perhaps the 200 day at $3.013) but in reality the market has moved freely through this area over the last 4 days but held yesterday. Yesterday’s declines happened on strong volume and would expect an increase in open interest as short participants added to positions. Take your position based upon the forecasts and let it ride until they change— which will probably be over the weekend.

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