April gas opened at $4.467 and quickly extended the rally to $4.901 (the highest price paid since 12/28/22) but the sponsorship/volume did not develop to support the higher price and prompt gas reversed lower. After setting a higher high before running out of support, the market quickly reversed and sold off in a quick three day fashion. Unfortunately (for bears) it did not reverse through the previous week’s low, and it lacked a significant volume compared to the previous weeks. Though prices clearly reversed — from a technical standpoint — it can’t be considered a weekly reversal– but it does indicate that the recent strength may be weak in the teeth and further jumps in prices will have significant road blocks between $4.50-$4.90 in the coming months.
The market has been trading in ranges for the last couple of months and perhaps the current market is setting up the new and next range $3.75-$4.90.
