The price run for the new prompt failed at the key resistance dating back to last Nov. Recall how prices reversed off the high and opened with a small gap (now $2.743-$2.755) and that gap formed the Island Reversal suggesting that prices were headed down. Oddly, that gap was not closed on Friday, in spite of the premium handed to the Oct contract as prompt. This (resistance) should be a key area for prices in the near term as we head into one of the weakest periods of the year for natural gas prices. I would expect prices to retrace into the expiration zone for Sept gas (perhaps a nickel above or below $2.50) during the holiday period short of some fundamental event occurring.
Major Support: $2.186, $2.162, $2.089-$2.055, $2.029-$1.937, $1.86, $1.527, Minor Support:$$2.621-$2.598, $2.51, $2.499-$2.468, 2.377, $2.255, $2.102, $1.975 Major Resistance: $2.743-$2.755, $2.809
