Beginning its first full week as prompt May, jumped higher but the attempt to trade further into resistance was frustrated by a previously violated short – term trend line. For the third time in three weeks prompt gas traded a weekly reversal, each of those reversals has been traded with diminishing volume suggesting an increasing “uneasy equilibrium”, as prompt gas consolidates ahead of a range expansion…one way or the other.
Prompt gas has been trading between a pair of high volume lows ($3.554 and $3.742) and a pair of high volume highs ($4.476 and $4.551) One exception of the brief spike to the March high, since mid – February . The zone between the two lows (02/18 & 03/03) is very well defined support that has been tested once…on 03/27 when about to expire April traded the March low, $3.689 and simultaneously completed an expected regression to the 20 – week SMA. This week’s poor close, strongly suggests May will retest that support…and an important trend line on the May chart.
