Can’t even begin explain why, but prices looked to be rocking (similar to July’s expiration) only to run out of enthusiasm and buyers. This dearth of participants forced the market to decline below the close of Mon (August chart) before finding some footing and closing up on the day. As discussed here for eight months, natural gas has a distinctly bullish bias to its trade, but it does need to reform it’s behavior and develop support zones that can be used to propel prices to higher levels in the late summer (more likely fall). Trading well above 2 standard deviations over the 20 week SMA is not supportive behavior. BTW– in the web site a couple of weeks ago, I discussed the “potential” relationship of natural gas to the US$ (discussed by several “pundits”)– kiss that potential link down the road. The dollar has been rising seven of the last ten days and even more odd is the fact crude has been rising also– guess its a new world order.
Major Support: $3.396, $3.368-$3.316, $3.198, $3.129, $3.02 Minor Support:$3.511-$3.538, Major Resistance:$3.722, $3.81
