Prices were gaining some momentum and then the storage release brought the house down with prices retreating to yesterday’s close. It remains a bullish trend (discussed since last fall) and mentioned yesterday about the nature of the gains in a bull market. This run is not based on sudden short covering, as open interest has gained this week on the higher volume, clearly supporting the market internals. This week’s extension strongly suggest that dips in natural gas should be buying opportunities.
Major Support: $3.00 $2.914-$2.886, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support: $2.876, $2.694, $2.483, $2.162
Major Resistance: $3.12-$3.15, $3.198, $3.251, $3.31, $3.396