Category: Daily Call

Quiet Before the Gremlins

Daily Continuous

Prices did little to indicate the bias for the upcoming storage release. Good time to sell some out of the money premium and see what happens.

Major Support:,$2.648, $2.35, $2.112, $2.026-2.00, $1.991, $1.93 ,$1.642, $1.605
Minor Support : $1.856,$1.89-$1.856
Major Resistance: $2.727-$2.784, $3.00, $3.16

Winter Contracts Now Rule

Daily Continuous

The declines held yesterday from the devastation from Monday’s trade and rebounded just slightly at the end. Of primary interest was the discount to the now prompt December remaining over $.50 during the meltdown of expiration. There is little technical reasons as to why Dec will not attempt to close the gap that now exists and the December contract declining to chase the lows of the Nov contract from Monday. The outstanding question will be around it being the Dec contract and expectations for weather changes going into the winter months.

Major Support:,$2.648, $2.35, $2.112, $2.026-2.00, $1.991, $1.93 ,$1.642, $1.605
Minor Support : $1.856,$1.89-$1.856
Major Resistance: $2.727-$2.784, $3.00, $3.16

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

2024 Expiration Behavior Returns

Daily Continuation

Discussed the history of expiration behavior in 2024 with last month being the only exception to the weakness trend for expiration’s during the year and yesterday provided a return to the tendency. The question will be how does it behave today and what is the effect on the spread to the December contract.

Major Support:, $2.35, $2.112, $2.026-2.00, $1.991, $1.93 ,$1.642, $1.605
Minor Support : $1.856,$1.89-$1.856
Major Resistance: $2.63, $2.727-$2.784, $3.00, $3.16

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

What Does this Expiration Bring Us

Daily Continuation

Mentioned in the Weekly section that each expiring contract month from February through September ’24 was “amply” offered as it went off the board. That changed last month. October traded the high of its tenure as prompt on the day it went to settlement at $2.585. Not sure what will happen with the Nov expiration but would not expect major volatility. My guess would be it is neither well bid or offered into expiration, as the market is seeking its near term commitment.

Major Support:, $2.35, $2.112, $2.026-2.00, $1.991, $1.93 ,$1.642, $1.605
Minor Support : $1.856,$1.89-$1.856
Major Resistance: $2.63, $2.727-$2.784, $3.00, $3.16

What Was That

Daily Continuous

Did not see that break out above happening– in fact due to the move on Wednesday, my speculation was some folks were trying to front run a bearish report. Well, we got the bearish report but prices didn’t decline — rather continued the ascent. With the expiration coming nest week (we know the 2024 record of declines into expiration), we have to be very cautious of this rally– it may take us to the $2.60’s — but it may provide a trap door for declines back to the $2.30’s. I will be following the differed contracts (Dec and Jan) for better insight of the near term price movement.

Major Support:, $2.35, $2.112, $2.026-2.00, $1.991, $1.93 ,$1.642, $1.605
Minor Support : $1.856,$1.89-$1.856
Major Resistance: $2.63, $2.727-$2.784, $3.00, $3.16

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

Brief Break Above

Daily Continuous

Did not see a break above the recent range coming but that was what happened yesterday. Not sure of the reason or focus for the gains except for the markets needing to challenge the highs (and potentially lows) of recent range trading. Perhaps, it was in advance of a storage release surprise coming tomorrow and known by some.

Major Support:, $2.35, $2.112, $2.026-2.00, $1.991, $1.93 ,$1.642, $1.605
Minor Support : $1.856,$1.89-$1.856
Major Resistance: $2.63, $3.00, $3.16

Small Bounce Off Support

Daily Continuation

When markets hit their respective extreme zones on the Daily RSI– it is wise to expect some sort of a bounce. What occurred yesterday was just that sort of event. Longer term — the market may rebound a slight further but make no mistake there will be additional tests of support.

Major Support:, $2.35, $2.112, $2.026-2.00, $1.991, $1.93 ,$1.642, $1.605
Minor Support : $1.856,$1.89-$1.856
Major Resistance: $2.63, $3.00, $3.16

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

Declines Show Oversold Near Term

Daily Continuous

The declines during last week left the market over sold on the Daily RSI reaching the extreme zone. While the Weekly RSI is not confirming yet, creating a slight divergence in the indicators. Prices are likely to continue to test the lows side of the range (creating the trade-able low). Would continue to trade the range from a selling premium standpoint.

Major Support:, $2.112, $2.026-2.00, $1.991, $1.93 ,$1.642, $1.605
Minor Support : $1.856,$1.89-$1.856
Major Resistance: $2.63, $3.00, $3.16

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

Running Out of Stimulus

Daily Continuous

The storage release could not take prices out of the developing range trade– Not sure what will provide a stimulation for prices to expand to either the upside or downside — we are stuck in the range.

Major Support:, $2.35, $2.112, $2.026-2.00, $1.991, $1.93 ,$1.642, $1.605
Minor Support : $1.856,$1.89-$1.856
Major Resistance: $2.63, $3.00, $3.16

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

Consolidation Continues

Daily Continuous

Not much more to add from yesterday–that said if the market is going to be range bound for the near future then the concept of selling premium at the lows or the rallies come into focus.

Major Support:, $2.35, $2.112, $2.026-2.00, $1.991, $1.93 ,$1.642, $1.605
Minor Support : $1.856,$1.89-$1.856
Major Resistance: $2.63, $3.00, $3.16