Prices finished the week with a new high weekly close for the July contract and did so with higher open interest and supporting volume supporting the gain in price. This activity is presumed bullish, but July faces an array of formidable and well – defined resistance. The highs of week ending 05/24 (the May high), the high of the past week and the May high of July gas (3.204) are nearly or greater than two standard deviations above the 20 – week SMA. Additionally, prompt gas has historically felt the weight of seasonal pressure during the first couple of weeks of June (historically around the holiday), however, this year the weakness was prior to the holiday. This will need to be defined in the coming week.
Major Support: $2.914-$2.886, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support: $3.00, $2.876, $2.694, $2.483, $2.162
Major Resistance: $3.12-$3.15, $3.251, $3.31, $3.396