Declines Ran Out of Steam (For Now?)

Weekly Continuation

The expected, July contract gave up the record premium that had been awarded over expired June. The new prompt traded just through June’s expiration low ($2.138 v $2.143) nearly on the the value of a trend line rising from the April/May lows, before recovering a few cents. In four of the last five weeks prompt gas has settled between $2.113 and $2.181 as daily and weekly trend lines steadily made their way to convergence with current price above the February/March/April/May lows ($1.967 – $1.944 – $1.946 –$ 2.031) while volatility continues to decline.

Violation of the trend line rising from the April/May lows (currently $2.144 and rising $.005/day) will suggest another test of the support presented by calendar month lows bracketing $2.00.Violation of the trend line declining from the May high (currently $2.290 and falling about $.04/day) will suggest a forthcoming test of the downtrend defining trend line drawn from the August/November/December highs (currently $2.383 and falling $.186/week). Expect July to successful test both ascending and declining short – term support and resistance.

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.