Very rarely when I take a week off — does the market trade an inside week (within the previous week’s high and low)– usually it blows up or out and I am left to explain what happened. Natural gas trade in a tight range (almost as boring as the fishing) only accomplishing further consolidation for the next move (be it up or down). Go into some of the thoughts of up or down in the Weekly area — for there is ample reasons for both directions. Prices are still in the extreme over bought area on the Weekly RSI but not on the Daily RSI so the consolidation comment is warranted. Price are headed into a seasonal weak period of the year (late July into the Labor Day weekend) so that should put some pressure on the market. The bulls can hang there bias on the market continuing to trade higher and open interest gaining (see Weekly), but volume is starting to weigh on movements. Still consider a brief pullback in order, but natural gas is in a longer term bullish trend (as discussed here since last fall).
Major Support: $3.58, $3.538-$3.511, $3.385, $3.368-$3.316, $3.198, $3.129 Minor Support:$3508-$3.485 Major Resistance:$3.722, $3.769, $3.811-$3.821, $3.87, $4.66
