Trend Continues With Strong Expiration – Weakness For a Day
As expected, prices rallied into the expiration process, setting the week’s high only to give a chunk of the gains up as June took over as prompt. Was interesting for this observer to watch the Friday trade on a 5 minute chart as prices leaped up from $7.05 to $7.30 in a matter of 10 minutes . That action smells to this trader as the machines and the algorithms rocking the market (the same type of event happened last month during the $1.60 correction off of the highs). This type of activity can create serious risk issues for those of us the don’t have the machine based algorithms nor the quickness to respond to bid/offer spreads with volume. Not complaining, just wanting to make you better at understanding the potential risks in your trading.
Prompt June but again found support at the rising trend line and 20 – day SMA with value of the trend line being $6.785, the 20 – day SMA of June gas was 6.796…the low trade 6.805. Successive months have now held their 20 – day SMAs as the most recent series of higher lows has traded and provided low risk entry points.