With last week’s bias change (see Weekly section for details), it is likely that the market will try and redefine a new near term range for the September contract between $2.67-$3.01. Would trade this range accordingly for the upcoming week or so. Remember that the Labor Day weekend is historically a weak period for prices (either before or just after) so adjust expectations accordingly. Several of you have asked about the upcoming winter prices and hedging ideas – while I don’t publish them in the web site — I may provide some analysis about the winter strip later in the week.
Major Support: $2.47, $2.00, $1.991-$1.96, $1.795-$1.766 Minor Support $2.74, $2.38-$2.26, $2.17 Major Resistance $3.00, $3.536, 3.59
