Further evidence occurred last week with gas that there may be a gradual bias shift headed in the near future. Prices opened the week lower and formed a higher low than June’s only to reverse and trade higher for four consecutive days. The rally briefly trade above the previous week’s high but closed the week just above the previous week for a classic outside week reversal. This action was accompanied with higher volume and gains in open interest for the week — both technically supportive indicators.
Momentum indicators are starting to provide a bullish “divergence” for gas as they never confirmed the June low (July expiration) and it is looking like the August expiration will unlikely follow the similar pattern as July’s expiration.