Welcome 2025

Weekly Continuous

I mentioned in the Daily last week that I was going to quote a wonderful historical analyst (Larry Marshall) who has been following the gas market as long as I have. Here are some of the highlights of his thoughts……

Sometime in the late ‘90s I noticed a tendency of consistent price change at the beginning of each calendar year…almost without exception. Because of the consistency of the tendency and disproportional importance relative to the other eleven calendar months I came to call it the January Phenomenon. Each year about this time I write a summary of those year ending/beginning events…the following is not a lot different than more than twenty – five or so (I lose count) that preceded it.

Almost since the beginning of recorded time (which in natural gas trading for convenience begins in December ’91 – January ’92), late December/early January highs or lows have consistently been more significant going forward into each New Year than the endings/beginnings of other calendar months.

To summarize the 33 years ending since 1991 – 92:

Twenty three of the thirty – three have begun with a gap (although a couple of times the gap occurred during the last or next to last trading day of December).

At the end of ‘23/beginning of ’24 there were two gaps. The first, on 12/28 was an expiration gap…February was offered at a discount to January ($2.536 v $2.621). The second was on the first trading day of the year. Both were quickly closed.

Eight times (five of which began with a gap) the high of the year traded during January, most often during the first week.

Seven times (five of which began with a gap) the low of the year traded during January, most often during the first week.

In the other seventeen years (now 18), thirteen of which began with a gap, either the high of low for January (and in several cases neither) would not be violated for a period of months but once either was, it was consequential…setting the direction of gas prices for an extended period.

The January ’23 low traded on 01/31 at $2.037. That low was violated on 02/01. Prompt gas traded lower until late March, falling another 27%.

During the six years beginning in ’18 and ending in ’23, the January low was the low of the year twice (’21 and ’22). The January high was the high in ’19. In 2018 the January high was not exceeded until November, in ’20 during August. During ’23 the January high…$3.392 traded on 01/09 (the sixth trading day of the year) was not exceeded until November 21st. Prompt gas has closed above that high twice, the last time was 12/12 at $3.455…the highest daily close since 11/03/23.

All things considered, 2024 conformed pretty closely to the expectation flowing from the January Phenomenon. We are not sure what the 2025 January Phenomenon will provide but I do find it interesting that a gap has already traded on the 27th (last Monday) meeting the historical norm. That gap remains open and should be considered as support.

Major Support:,$2.727-$2.784, $2.648, $2.39, $2.35, $2.112,
Minor Support : $3.39-$3.31, $3.167, $3.00-$2.95, $2.914, $1.856,$1.89-$1.856
Major Resistance: $3.631-$3.681
, $3.829, $3.92, $4.00

New Year — Same Range

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Early trade this week has provides important historical perspective (please read the historical analysis in the Weekly section). At the close on New Year’s Eve prices had retreated to the range that has held the action for the last few months. Continue to trade the range — been profitable so far.

Major Support:,$2.727-$2.784, $2.648, $2.39, $2.35, $2.112,
Minor Support : $3.39-$3.31, $3.167, $3.00-$2.95, $2.914, $1.856,$1.89-$1.856
Major Resistance: $3.631-$3.681
, $3.829, $3.92, $4.00

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Feb Decides to Rally Back to Jan Range

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First off the Daily will be spotty this week with the New Year’s and my travel. The Weekly will be available on Dec 31st and it will have an interesting historical tendency for prices in early Jan, that posting may well be the last of next week. In the mean time, the action on Sunday night took the Feb back up to the range of Jan. Not sure if that will hold during the trade on Monday after more participants join the party. As suggested during the expiration- play the ranges until a defined bias is created on normal volume.

Major Support:,$2.727-$2.784, $2.648, $2.39, $2.35, $2.112,
Minor Support : $3.39-$3.31, $3.167, $3.00-$2.95, $2.914, $1.856,$1.89-$1.856
Major Resistance: $3.631-$3.681
, $3.829, $3.92, $4.00

Price Run Hits a Wall

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Price action got slapped coming out of the pre-holiday run and returned $.25 yesterday. Now we head into expiration and there is a significant discount of the Jan contract to the Feb. While figuring out how that is going to work out, traders get a storage release to evaluate, Some traders use the options market if they have to have a position on. I am expecting some declines in the Jan contract going into expiration and for Feb to hang tight.

Major Support:,$2.727-$2.784, $2.648, $2.39, $2.35, $2.112,
Minor Support : $3.39-$3.31, $3.167, $3.00-$2.95, $2.914, $1.856,$1.89-$1.856
Major Resistance: $3.631-$3.681
, $3.829, $3.92, $4.00

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Dec Rally Falls Short

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The run to send prices to the high testing $4.00 fell short and declined during the day. Did not expect that test of the upper end of the range, but the market may have defined the range for expiration. With volume and participation of traders reduced due to the holiday, volatility and daily ranges will be higher.

Major Support:,$2.727-$2.784, $2.648, $2.39, $2.35, $2.112,
Minor Support : $3.39-$3.31, $3.167, $3.00-$2.95, $2.914, $1.856,$1.89-$1.856
Major Resistance: $3.631-$3.681
, $3.829, $3.92, $4.00

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Breakout Excitement

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Made comparisons to last week’s price action to this week’s and that comparison ended quickly after the storage release. Price didn’t give up the gains after the week, but rather, closed the day at the highs of the day and then extended those gains in the after-market. I do not recommend play the lightly traded after market, so I will be waiting until the full market opens. Clearly, the recent range trade has been extended, and adjustments to the trading the range should wait for confirmation today. Remember, there have been “breakouts” before only to get slammed the next day.

Major Support:,$2.727-$2.784, $2.648, $2.39, $2.35, $2.112,
Minor Support : $3.39-$3.31, $3.167, $3.00-$2.95, $2.914, $1.856,$1.89-$1.856
Major Resistance: $3.487
, $3.527$3.563, $3.631-$3.681

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Similar Drift Upward to Last Week

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Similar trade behavior to last week with the early week weakness followed by a small rally into the storage release. Last week the Thursday rally set the high for the week before melting back into the range on Friday. Have to wait and see how this report effects price action but from the trading standpoint you have to continue trading the range.

Major Support:,$2.727-$2.784, $2.648, $2.39, $2.35, $2.112,
Minor Support : $3.167, $3.00-$2.95, $2.914, $1.856,$1.89-$1.856
Major Resistance: $3.307 $3.392, $3.487
, $3.527$3.563

Whip-saw Confusion

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I must admit that from a technical standpoint yesterday is understandable as prices found support from a near term zone. What I get confused about is the weather forecasts have above temps through the Holiday which historically pressured prices in Dec. Stick with the range discussed here several times and be nimble. Seems to be something else in the Natural air.

Major Support:,$2.727-$2.784, $2.648, $2.39, $2.35, $2.112,
Minor Support : $3.167, $3.00-$2.95, $2.914, $1.856,$1.89-$1.856
Major Resistance: $3.307 $3.392, $3.487
, $3.527$3.563

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Declines Run Low on Volume

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The start on Sunday night stated with a big decline and extended those declines in the middle of the night — only to find a gradual support bias that took prices back to where the initial opening decline began the trade. Again, the range has likely been developed during the last week or so. Mentioned it in the Weekly last week. Use the option market for short term gains in the next week as volume based bias is unlikely to present itself.

Major Support:,$2.727-$2.784, $2.648, $2.39, $2.35, $2.112,
Minor Support : $3.167, $3.00-$2.95, $2.914, $1.856,$1.89-$1.856
Major Resistance: $3.307 $3.392, $3.487
, $3.527$3.563

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Prices Testing Lower Range

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Go into the expectations in the Weekly section bu suffice to say, that prices are likely to continue in the recent range that was discussed last week but mentioned again in the Weekly. Prices are starting the Sunday trade lower — so expect a decline lower to the Support zone.

Major Support:,$2.727-$2.784, $2.648, $2.39, $2.35, $2.112,
Minor Support : $3.167, $3.00-$2.95, $2.914, $1.856,$1.89-$1.856
Major Resistance: $3.307 $3.392, $3.487
, $3.527$3.563