Heard from some of the fundamental traders yesterday about the one day up — one day down– one day up phenomenon that has ruled trade this week and my suspicions were confirmed that the movement was due to the changes in the coming two week forecasts. Happens frequently in the shoulder seasons for gas and it makes range trading a cautious strategy. I like sticking to the major range and being patient to see if the support and/or resistance areas hold. The other reason for this approach is the stop losses are usually very close. The market was banging up at the gap again yesterday, failing once again– so do we go back and test support? You can make some money in this $.60 range.
Major Support: $5.61-$5.44, $4.716, $4.705-$4.68 Minor Support: $5.47 Major Resistance: $6.314, $6.456, $6.74, $7.18, $7.532, $7.71-7.75, 8.021,
