Back In the Saddle

Weekly Continuation

Did not send out a Weekly analysis on Sunday so I wanted to share comments from the weekend charts (even though they are current for this week). In last week’s items there was a discussion of a very significant zone of support between +/- $2.330 and $2.450. Analysis strongly suggested that August gas would be “drawn” into that zone before rallying. When trading resumed, August was offered below lthe previous week’s low and expecting that the triggers for additional selling within that zone would be hit. It did not happen. Following a low print of $2.484 August reversed course and ultimate traded through last week’s high (forming an “outside” week reversal higher) and did that with increasing volume. Perennially amply offered August (although it certainly wasn’t last year) closed higher for the first time in four weeks. Prompt August has redefined support with back to back weekly lows of $2.484 and $2.492 ( four of the last five weeks between $2.448 and $2.536; resistance with consecutive weekly highs of $2.793, $2.750 and $2.789–with four of the last five weeks between $2.740 and $2.83.

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