Redefine or Just Test Support Levels

Weekly Continuation

March gas gapped lower at the beginning of last week, then tried to close the gap and failed, creating a resistance target of $4.468 – $4.487 for the contract to challenge before or during expiration (likely in its final days as prompt). Traders should wait for March to redefine near term support during the coming week as last week’s prices suggests it either has done or is in the process of doing.

Since peaking at 1,182,657 open interest in total contracts outstanding (up from 1,104,958 at the beginning of the year) coincident with March trading to $5.572 (the biggest one – day spike in volume in nearly a year (02/16/21). That total open interest has now declined more than 94,000 contracts in seven trading days to less than the total at the December 30th low.

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