Disscussed in the Weekly section one of the results of breaking the decline trend line of resistance… and that violation triggers a substantial short covering rally…. (occurred yesterday). While that may happen there is also a third option is that prompt gas works its way through the declining trend line of resistance, which adds substantial evidence that a very significant low is in place, rallies for a few days, which it should as some short covering is absorbed. This event would take prompt July to the area around the April high ($2.529), is a likely objective for the July prompt. Little did I know that would occur in three days (primarily one day). Look for prices to consolidated and re-test some of the gains from yesterday.
Major Support: $2.00, $1.991-$1.96, $1.795-$1.766 Minor Support: $2.38-$2.26, $2.17 Major Resistance$2.543-$2.604, $2.836, $3.00, $3.536, 3.595
