Prices extended their decline on the return of trade after the weekend. As discussed, this period of the year is one on the most bearish periods for trade during the year. The declines last week sent price below the 50 day SMA for a close below that zone for the first time since mid-July . The zone between the 50 – day SMA, this last week’s low, and the August low ($7.532) is serious support for October and for the intermediate term uptrend that began following the July low.
With a consolidation pattern developing, the technical indicators typically fluctuates between neutral with a price positive bias and neutral with a price negative basis while a trading range is being constructed. Open interest was steady as the market fell to close lower (a slightly technical positive, but that was offset by increasing volume) . Volatility remains historically extreme with this week’s range $1.375 was greater than the 15 – week average ($1.300). Before the gas market is ready for another leg up daily and weekly ranges tend to compress as buyers and sellers approach a balance forming an equilibrium of a sort.
