Discussed it in the Daily last week, but prices preformed a reversal after the early week closure of the Daily and Weekly Gap. Following Monday’s reversal day prompt gas traded quietly (as compared to the to recent volatility), with substantially less volume than the prior week, but on Friday the declines declined below last week’s low by $.013 to leave a technically bearish “outside” week reversal. This creates a price negative technical presumption and January ended the week in the lower quarter of the recent range traded and on a continuation basis the lowest close since July 16th.
Price action seems to develop the construction of a trading range as prompt gas attempts to define some kind an equilibrium. A year and a half ago prompt gas rallied from its July expiration multi – year low but it wasn’t until August that trade through the May high resolved an extended trading range to the upside and a confirming higher low in September provided some definition to the uptrend.
