Category: Daily Call

Lets Go Top Side

Daily Continuous

The price action checked the low end of the mini-range and now seems to want to check the high side of resistance. Storage report will provide any stimulation that may be needed to move price beyond the range. Limit exposure until the release — unless you like rolling the dice.

Major Support: $2.97, $2.727, $2.648,
Minor Support :
Major Resistance: $3.628, $3.86, $4.168, $4.461, $4.501, $4.551, $4.746-$4.75, $5.03

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Can’t Say Much During This Range Period

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Wish I had some key technical insight for this trade — but I really don’t as the market is just sloshing back and forth with in a rather tight range developed from expiration of the May contract. Patience and selling premium are my thoughts.

Major Support: $2.97, $2.727, $2.648,
Minor Support :
Major Resistance: $3.628, $3.86, $4.168, $4.461, $4.501, $4.551, $4.746-$4.75, $5.03

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Range Testing Continues

Daily Continuation

Not a lot to add to the heading as the market is testing and establishing a range for near term price action– would play the further sides of support or resistance to avoid being chopped by the potential action.

Major Support: $2.97, $2.727, $2.648,
Minor Support :
Major Resistance: $3.628, $3.86, $4.168, $4.461, $4.501, $4.551, $4.746-$4.75, $5.03

Market Needs to Define

Daily Continuous

Market is challenging initial resistance areas which will help define the June prompt range. The moving average levels will be key in the move and breaks above may provide the momentum to move prices higher.

Major Support: $2.97, $2.727, $2.648,
Minor Support :
Major Resistance: $3.628, $3.86, $4.168, $4.461, $4.501, $4.551, $4.746-$4.75, $5.03

Storage Brings Upward Push to Initial Resistance

Daily Continuous

Guess the storage report provided some strength for prices as they rallied to intermediate resistance.The rally will need to take out the resistance and extend to the next level. Patience is the key during the next few weeks is you are a buyer or a seller. Was the April decline similar previous April break downs? Or are we headed to further tests of support? Would not put a lot of risk right here.

Major Support: $2.97, $2.727, $2.648,
Minor Support :
Major Resistance: $3.628, $3.86, $4.168, $4.461, $4.501, $4.551, $4.746-$4.75, $5.03

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Expiration Seemed Drain Momentum

Daily Continuation

The expiration of the May contract seemed drain any further positive momentum from the expiration and left the market with a tight range trade. This consolidation may take the rest of the week, but I would expect a market test of the support zone from the May expiration.

Major Support: $2.97, $2.727, $2.648,
Minor Support :
Major Resistance: $3.628, $3.86, $4.168, $4.461, $4.501, $4.551, $4.746-$4.75, $5.03

Didn’t Expect That

Daily Continuous

Did not see a $.20 rally in both the prompt and June contract on expiration. What does it mean? — still in the range that held through the end of April– so I would expect the range to remain intact. Then again I had no expectations of yesterday’s move. Was it short covering or new positions in — will evaluate that with the volume and open interest data today.

Major Support: $2.97, $2.727, $2.648,
Minor Support :
Major Resistance: $3.16, $3.628, $3.86, $4.168, $4.461, $4.501, $4.551, $4.746-$4.75, $5.03

Expiration Day

Daily Continuation

By now you should know my attitudes about trading on expiration day — I don’t. One thing I will be looking for is how the Jun contract trades relative to expiration. I am expecting weakness in the Jun contract early in it’s life, and to come back into the May expiration range.

Major Support: $2.97, $2.727, $2.648,
Minor Support :
Major Resistance: $3.16, $3.628, $3.86, $4.168, $4.461, $4.501, $4.551, $4.746-$4.75, $5.03

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Expiration Monday

Daily Continuous

The price decline took prices down to levels not seen since last December before finding some support. If you are a long time subscriber, you are well aware that I don’t participate in the expiration trade and very rarely work the upcoming prompt (in this case it is the June contract). I will be watching the spread between expiring May and upcoming June prompt over the next two days. Will update over the weekend and define thoughts in the Weekly section on Monday.

Major Support: $2.97, $2.727, $2.648,
Minor Support :
Major Resistance: $3.16, $3.628, $3.86, $4.168, $4.461, $4.501, $4.551, $4.746-$4.75, $5.03

Would Not Chase June

Daily Continuous

June is trading a slight $.13 premium to the expiring May contract (Monday) and I will not be chasing it. Depending on how the prompt trades in the last three days of life, any position in June will be beyond my risk tolerance.

Major Support: $2.97, $2.727, $2.648,
Minor Support :
Major Resistance: $3.16, $3.628, $3.86, $4.168, $4.461, $4.501, $4.551, $4.746-$4.75, $5.03