Category: Daily Call

Starting Sunday night, it was clear prices were going to test the $2.00 area and that is what happened. Finding limited support — not sure how far the run goes off of the test — continue the range trade if you are patient enough.

Major Support: $2.127-$2.095, $2.00, $1.991-$1.96, $1.795-$1.766
Minor Support:
Major Resistance$2.836, $3.00, $3.536, 3.595

Prices start off Sunday night weaker, gaping lower and starting to test the $2.00 zone quickly as the May contract takes over as prompt. Trading to a low, rallying and then returning to that prior low and holding, is the primary method of natural gas defining a longer term low. This week prompt gas undercut the first low but failed to follow through to the downside re-defining support as a zone between two monthly lows, ($1.944 – $1.967). Not nearly enough time has passed to draw a definitive conclusion, but new prompt May ended Friday above the continuation 10 – day SMA for the first time since the failure of the rally from the February low, thatvery short – term moving average served as declining resistance at multiple daily highs since prompt April first closed beneath it on March 8th.

Major Support: $2.127-$2.095, $2.00, $1.991-$1.96, $1.795-$1.766
Minor Support:
Major Resistance$2.836, $3.00, $3.536, 3.595

Solid run for support but prices couldn’t muster the strength to test the lows — in fact they just got to $2.127 before buying showed up. This area down to $2.095 will provide a major hurdle for further attempts at the Feb lows. Going to keep saying — play the range and sell premium when available. I am traveling to Mexico for the next seven days and the internet is not going to be an option. Should be back to look at the expiration during the middle of next week.

Major Support: $2.127-$2.095, $2.00, $1.795-$1.766
Minor Support:
Major Resistance$2.836, $3.00, $3.536, 3.595

This is going to get interesting as prices seem to be destined to test the Feb lows and it will be interesting to see if the volume is there to accomplish the task. Until then — as spoken before — play the range and finally, the market is at the low end of the range.

Major Support: $2.00, $1.795-$1.766
Minor Support:
Major Resistance$2.836, $3.00, $3.536, 3.595

Not much to add from the headline — go into some of the supporting discussion in the Weekly section. For now if you are a buyer, be patient — if you are a seller don’t be greedy (or maybe be greedy and get caught in the rebound similar to early March).

Nothing to add from the Daily’s of the last week — Play the range.

Major Support: $2.00, $1.795-$1.766
Minor Support: $2.41- $2.34
Major Resistance$2.836, $3.00, $3.536, 3.595

The range trade of late tested the lows before finding buyers. As discussed yesterday — traders should continue to play the recent range between $3.00 – $2.40. No information available for a longer term position at this time, but as we conclude the withdrawal winter season, clearer expectations will likely surface to the market.

Major Support: $2.00, $1.795-$1.766
Minor Support: $2.41- $2.34
Major Resistance$2.836, $3.00, $3.536, 3.595

What can I say about consolidation and declining range trade. Go back a couple of years and read the diatribes of the range bound boring market then. This time feels a little different for both directions and it will be interesting to witness. From the trade perspective (perhaps not daily) is playing the ranges.

Major Support: $2.00, $1.795-$1.766
Minor Support: $2.41- $2.34
Major Resistance$2.836, $3.00, $3.536, 3.595

Prices rallied off of a test of support and continue in the recent range. Would expect this behavior to continue until some element of the supply/demand balance changes. Continue to trade the range near term.

Major Support: $2.00, $1.795-$1.766
Minor Support: $2.41- $2.34
Major Resistance$2.836, $3.00, $3.536, 3.595

Sunday night prices were weaker, extending the trade bias late last week. This decline should establish a higher low from last month and then should continue to build a base from which to move towards the spring/early summer rally.

Major Support: $2.00, $1.795-$1.766
Minor Support: $2.41- $2.34
Major Resistance$2.836, $3.00, $3.536, 3.595