Weakness Continues with July Prompt

Weekly Continuous

First off– We are in the midst of moving the office to another location which will require interruptions of internet access. I will try to get updates on the Daily out in a timely matter but there may be some issues with getting them in the email. Should you not get the email, turn to the website for the Daily. We experienced some slight problems last week but believe we had them rectified.

The next comment is “who cares about natgas”. If you didn’t get the last two Daily’s you didn’t miss much as the July contract reversed its historical trend of showing a brief rally in the middle of June only to break down and press the lows just below $1.60. Shockingly, that test failed and prices found the footing to rise on Thursday and Friday. Since the May high of July gas has traded a lower high for the sixth week consecutively, but still remains in the overall range discussed here at great length. With expiration coming up late this week, I am not convinced that July will be extending to far to the strong support surrounding $1.55-$1.51. If it could not garner the selling that after closing at $1.614, not sure, from a technical perspective, what will flip the minds of traders this week. Expect the expiration process to develop a range between $1.60 and $1.80 during the week and end in the vicinity of June’s expiration of $1.722.

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