The storage report came in above expectations (I guess) as prices took off after the publication. From my perspective the counter rally was to be expected at some point as prices have had quite a negative correction of late. While yesterday’s action contained some short covering based upon the storage data– now the question is how much more short covering will occur if prices continue to rally. On the downside the $2.38 area has proven itself quite powerful.
Finished the analysis on the winter price history over the last 5 years on the long term section.
Support: $2.425,$2.373, $2.255-$2.176
Minor Support: $2.162
Major Resistance: $$2.74-$2.789, $2.98-$3.05,
Minor Resistance: $2.55, $2.649, $2.798