Consolidation — Range Trade

Weekly Continuation

This week’s decline was the seventh straight lower weekly close since then prompt September failed to hold onto or extend the rally through $10. The most recent period that there were seven consecutive lower weekly closes was between mid – November ‘14 and mid – January ’15. After one recovery week prompt gas fell for three more weeks. Before that there were nine straight lower weekly closes during the late winter/spring of 2012. That decline culminated in the April ’12 multi – year low.

Since the August high prompt gas has fallen $3.723 (37%) as a reversion to the mean has again brought it from substantially above the 40 – week (55%) to this week’s close below it (Nov contract) for the first time since the first Friday of 2022.

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