Author: Willis Bennett

The range trade continued with a slight extension for prices as options expired. The July contract continued to trade between $.06-$.07 premium to the June so now what happens to June may not extend to the July contract. What ever the variance to the June contract it would be wise to expect July to test some part of the expiration range as it takes over as prompt.

Major Support: $2.883, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.01, $3.12, $3.251, $3.31, $3.396

Prices gradually rallied during the day to close the small gap from the Sunday night open. No technical variance from what was discussed yesterday and on the Weekly portion of the website. Having some dental work tomorrow — as a result may not be able to write the Daily– and not sure it would make any sense.

Major Support: $2.883, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.01, $3.12, $3.251, $3.31, $3.396

Discussed last week that the trade would help “define” the expiration process this week. The failure of the rally (creating a weekly reversal — see the Weekly section) has assisted in determining the annual weakness surrounding Memorial Day Holiday. Prices on Sunday night do what they do best (create a narrative going into Monday) and have created a small gap in the weekly and daily charts. As mentioned last Monday on the rally — it will be interesting to see if this narrative remains through the day and expiration.

Major Support: $2.883, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.01, $3.12, $3.251, $3.31, $3.396

Apologies for no Daily in the email this a.m.– I am not technically trained in computers and had some internet issues while observing a hockey game. Would of been a waste of time as the market is just going to test the low side of the trade range going into expiration week as discussed yesterday.

Major Support: $2.883, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.01, $3.12, $3.251, $3.31, $3.396

As discussed yesterday that the prices were bound to test the break out area and that they did breaking below the $3.00 area yesterday. Perhaps, a new range is trying to form (basically between $2.90 – $3.10), we will have to wait to watch the action. There are four trade days before the expiration 3-day close and as mentioned, this will set up the expiration and the roll into July. Would expect this is the range to manage price into the close.

Major Support: $2.883, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.12, $3.251, $3.31, $3.396

Not surprising that after a rally that was provoked by short covering (breaking above the $3.00 level) prices would retrace back to the old resistance area that is now support ($3.00). Thank you to the subscribers that forwarded emails regarding the break above and the expectations going into the July contract as prompt. It will not be a straight action of rising prices onward with the July contract and as discussed yesterday, we need to watch how this sets up for expiration. The retracement to test the support yesterday is very healthy for the market now does it break back below short term support ($3.00) and for how long.

Major Support: $3.001, $2.883, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.12, $3.251, $3.31, $3.396

Have discussed here for the last week about testing and breaking above $3.00. Last week, prices had a wonderful opportunity but failed, retracing back into the range. Then on a Sunday night prices open above the key resistance area and stay above throughout the day. As mentioned a couple of weeks ago, Natural Gas had not shown the strength of the other commodities in price action this spring, perhaps it is catching up. If so– this run will likely last into the July trade and perhaps longer– the key is this week setting up expiration. Clearly, the longer term analysis brought forth in the fall regarding the higher highs and higher lows remains in place.

Major Support: $3.001, $2.883, $2.78, $2.71-$2.70, $2.658, $2.52, $2.422-$2.414
Minor Support:$2.876, $2.694, $2.483, $2.162
Major Resistance: $3.12, $3.251, $3.31, $3.396