Critical Support Holds Again

Weekly Continuation

The lows of the last two weeks and the October low, have been within a band of support between the November and December ’18 highs that prompt gas broke out through during September on the way to the October high (Q4 high to date). Multiple attempts to penetrate that well – defined support tends to confirm (especially after the downside momentum generated by last week’s decline) to that breakout level’s significance.

Eight straight contract months have rallied into expiration. The Friday before November went off the board it closed at $5.280. Three trading days later it settled at $6.202. I have no knowledge of why that trend of the last 8 months shouldn’t continue, but I doubt it will have the same action of the expiration of last month. Expect the low end of the range to be tested during the week, but also be prepared for the trend consistent rally.

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