Category: Daily Call

Taking Its Time

Daily Continuous

Well the break above $2.00 is clearly on the “sloth” approach. Though prices did manage to eclipse $2.00 for a moment — there was not enough to force any sort of covering — just additional selling into the close. Not much to add technical — just a struggle at resistance.

Major Support:, $1.595, $1.52-$1.519, $1.432, $1.312
Minor Support :
Major Resistance: $1.94-$1.967, $2.00, $3.00, $3.16, $3.48, $3.536, 3.59,

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A Little Closer

Daily Continuous

It climbed closer to the key resistance at $2.00 but could not finish it at the end. Not sure if the April contract will but one would have to believe that prices are going to run above $2.00 during the Q2 high. Is it now or later — no clue.

Major Support:, $1.595, $1.52-$1.519, $1.432, $1.312
Minor Support :
Major Resistance: $1.94-$1.967, $2.00, $3.00, $3.16, $3.48, $3.536, 3.59,

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Going to Check Resistance

Daily Continuous with RSI

Went into some of the longer term analysis and expectations in the Weekly section. On the Daily just checking out the resistance levels to make sure they hold. Should they break — expect a short covering rally to send prices $.15 higher. Should they hold the range remains in place and a test of support is likely coming in a few days.

Major Support:, $1.595, $1.52-$1.519, $1.432, $1.312
Minor Support :
Major Resistance: $1.863, $1.94-$1.967, $2.00, $3.00, $3.16, $3.48, $3.536, 3.59,

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Momentary Volatility

Daily Continuous

found a brief moment of price movement after the release, likely short covering on the number being more bullish than expected, but then prices just spent the remainder of the day retracing lower. Again, no major commitment in either bias. Snooze along.

Major Support:, $1.595, $1.52-$1.519, $1.432, $1.312
Minor Support :
Major Resistance: $1.863, $1.94-$1.967, $2.00, $3.00, $3.16, $3.48, $3.536, 3.59,

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The Beat Goes On

Daily Continuous

Missed the email yesterday, but nothing has changed with the roll over to April as prompt. Perhaps the storage report will provide some volatility, but I am not sure. Everyone knows that we are well supplied with gas coming out of the winter– it is basically the reason we are trading under $2.00. I am still working the call spreads and selling other premium to just keep interested in a very boring market.

Major Support:, $1.595, $1.52-$1.519, $1.432, $1.312
Minor Support :
Major Resistance: $1.863, $1.94-$1.967, $2.00, $3.00, $3.16, $3.48, $3.536, 3.59,

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April Takes Over

Daily Continuous

Did not get this out in the mail today, my apologies, but to tell the truth, wasn’t even going to post today due to the lack of action. Market seems to maintain range bound action- so lets see if it challenges the resistance area before the storage data comes out on Thursday.

Major Support:, $1.595, $1.52-$1.519, $1.432, $1.312
Minor Support :
Major Resistance: $1.863, $1.94-$1.967, $2.00, $3.00, $3.16, $3.48, $3.536, 3.59,

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Consolidation? Not Sure

Daily Continuation

Have no clue if this is a consolidation process or just range trading after testing the higher side of the range. Needless to say, this may just be the market scrambling during the expiration process. My attitude has always been about staying away from the expiration trade. Continue with that thought.

Major Support:, $1.595, $1.52-$1.519, $1.432, $1.312
Minor Support :
Major Resistance: $1.863, $1.94-$1.967, $2.00, $3.00, $3.16, $3.48, $3.536, 3.59,

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Are Cracks Developing in Bear Cave

Daily Continuous

Not saying that the bear market is coming to a new definition but some of the “divergences” may be starting to develop. A lower low last week , but not confirmed with a lower RSI (lacking momentum), declining open interest (see Weekly) as prices rose, prices manage to close just at (or slightly above) the the 2 standard deviation band. This may be a market that will need time to correct from its condition (see Weekly) but it will and there is likely higher prices and more short covering headed into the game.

Major Support:, $1.595, $1.52-$1.519, $1.432, $1.312
Minor Support :
Major Resistance: $1.863, $1.94-$1.967, $2.00, $3.00, $3.16, $3.48, $3.536, 3.59,

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Storage Report Brings Consolidation

Daily Continuous

With the recent bearish trade, my expectations that the new headlines regarding production cuts would become history and declines would continue again. To my surprise, declines were held to the previous day’s lows. Time will tell if the operators comments will drive prices longer term. Until then, continue to play the call spreads, mentioned earlier in the week, using the further summer months.

Major Support:, $1.595, $1.52-$1.519, $1.432, $1.312
Minor Support :
Major Resistance: $1.863, $1.94-$1.967, $2.00, $3.00, $3.16, $3.48, $3.536, 3.59,

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Late Strength Held

Daily Continuous

The late day rally yesterday was confirmed as prices remained strong throughout the day. The rally was based upon news that some operators were lowering production volumes and limited new projects. Not exactly sure what the sellers (hedge funds) were thinking with production being strong while prices were at $1.50 or below at the well head. The only tool the operators have is the amount they produce and drill for. The first salvo has now been fired — and today (storage report) will provide further insight as to bias near term.

Major Support:, $1.595, $1.52-$1.519, $1.432, $1.312
Minor Support :
Major Resistance: $1.863, $1.94-$1.967, $2.00, $3.00, $3.16, $3.48, $3.536, 3.59,

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