Prices rallied from that rising support off of the support from the 200 day and 40 week SMA’s and extended that rally through the previous week’s high. An “outside” week (trading through both of the previous period’s extremes) reversal is often characteristic of an intermediate term low (or high), but November was unable to hold on to/build on the rally gains. Prompt gas finished the week lower for the sixth straight week since trading the late August multi – year high just above $10. The closes of the last three weeks have been progressive lower, but are within $.093 ($6.841 – $6.748)
The last time a series of weekly closes were as closely bunched was during the construction of the December low. From week ending 12/17 through 12/31 there were three weekly closes between $3.669 and $3.760. Those “tight” weekly closes were an indication that after thirteen weeks the intermediate term downtrend from the October – Q4 high was “sold out”– The jury is out regarding this technical event.
