Category: Daily Call

A New Range Likely to Develop

Daily Continuous

With last week’s bias change (see Weekly section for details), it is likely that the market will try and redefine a new near term range for the September contract between $2.67-$3.01. Would trade this range accordingly for the upcoming week or so. Remember that the Labor Day weekend is historically a weak period for prices (either before or just after) so adjust expectations accordingly. Several of you have asked about the upcoming winter prices and hedging ideas – while I don’t publish them in the web site — I may provide some analysis about the winter strip later in the week.

Major Support: $2.47, $2.00, $1.991-$1.96, $1.795-$1.766
Minor Support $2.74, $2.38-$2.26, $2.17
Major Resistance $3.00, $3.536, 3.59

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

On Cue

Daily Continuous

My discussion and expectations were accurate, as prices retraced the previous gains and tested (closed) within the area of resistance that had held the market gains for last few months. Key question remains does the new support zone (old resistance) hold the declines like it held the gains. My best guess is the the market will be forming a new range with the new support zone being defined in the near term.

Major Support: $2.47, $2.00, $1.991-$1.96, $1.795-$1.766
Minor Support $2.74, $2.38-$2.26, $2.17
Major Resistance $3.00, $3.536, 3.59

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

Breakout

Daily Continuous

A little surprised that the break out to the highs from Feb occurred this early in the September prompt (was expecting it after Labor Day) but perhaps that timing will provide the next leg in the current run. Nevertheless, yesterday provided the proof of what has been suggested here for a couple of months – that a series of higher highs and higher lows, is signalling the gradual demise of the bear market in 2023. What is next — storage report will be interesting to watch what occurs after the gains of yesterday — but my expectation is a retracement of the gains during the trade and a test of support provided by the old range.

Major Support: $2.47, $2.00, $1.991-$1.96, $1.795-$1.766
Minor Support $2.836-$2.81, $2.38-$2.26, $2.17
Major Resistance $3.00, $3.536, 3.59

This Week It Is the High End

Daily Continuous

Last week the market tested the low end of the range and closed the day just off the lows– this week prices are testing the high end of the range and close yesterday just off the highs. Explained last week that the price action was great for the traders and it continues to be. My only concern is when does the high end break out or when does the low end break down. For now .. it is the potential break out to higher prices.

Major Support: $2.00, $1.991-$1.96, $1.795-$1.766
Minor Support:$2.52-$2.47, $2.38-$2.26, $2.17
Major Resistance $2.816-$2.836, $3.00, $3.536, 3.59

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

Price Action Decides to Challenge Resistance

Daily Continuous

It didn’t take long for the market to rebound and run a little off of last week’s test of support and start to challenge the the near term resistance. Did not expect the run as quick nor as decisive as it was– but here we are. Find it interesting that some of the pundits have started to adjust commentary to more bullish aspects of the market (heat continuing, Russia cutting gas to Europe and storage still at a surplus to averages — now later has become a concern) but if my suspicions are accurate — you will see a test of last months highs coming.

Major Support: $2.00, $1.991-$1.96, $1.795-$1.766
Minor Support:$2.52-$2.47, $2.38-$2.26, $2.17
Major Resistance $2.754, 2.816-$2.836, $3.00, $3.536, 3.59

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

Range Continues to Hold

Daily Continuous

Prices stayed in the near term range (discussed in the Weekly Section) last week and I will expect the continuation of this pattern for the near term. Know it is boring and not a lot of revenue potential but it can provide good opportunities selling premium in the options market.

Major Support: $2.00, $1.991-$1.96, $1.795-$1.766
Minor Support:$2.52-$2.47, $2.38-$2.26, $2.17
Major Resistance $2.754, 2.816-$2.836, $3.00, $3.536, 3.59

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

Trader Heaven

Daily Continuous

If you are a trader you have to love this action. Prices decline to test the support level then immediately rebound. My question is where does this rally take prices to– stick with the range and the mini-range from last week for the resistance area just beyond $2.70.

Major Support: $2.00, $1.991-$1.96, $1.795-$1.766
Minor Support:$2.52-$2.47, $2.38-$2.26, $2.17
Major Resistance $2.754, 2.816-$2.836, $3.00, $3.536, 3.59

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

Tests and Closes the Day at Mid Term Support

Daily Continuous

Just when I made the comment about the boring aspects of the market it decides to break lower and test the support zone from the middle of June that has held the market since ($2.47). Now what happens — do the bears force declines to the $2.20area or does it find buyers for a short term bounce.

Major Support: $2.00, $1.991-$1.96, $1.795-$1.766
Minor Support:$2.52-$2.47, $2.38-$2.26, $2.17
Major Resistance $2.816-$2.836, $3.00, $3.536, 3.59

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

Exciting — Isn’t it

Daily Continuous

Does the concept of watching paint dry come into play here.

Major Support: $2.00, $1.991-$1.96, $1.795-$1.766
Minor Support:$2.52-$2.47, $2.38-$2.26, $2.17
Major Resistance $2.816-$2.836, $3.00, $3.536, 3.59

Going Nowhere at a Turtle Pace

Daily Continuous

Not much to see and little to do as prices remained dormant for the upcoming fall. Not enough volatility to make selling premium a strong option and no directional bias sounds like a recipe to go fishing. This may turn out to be the way the September contract plays out with no strong bias and just in a range. We shall see.

Major Support: $2.00, $1.991-$1.96, $1.795-$1.766
Minor Support:$2.52-$2.47, $2.38-$2.26, $2.17
Major Resistance $2.816-$2.836, $3.00, $3.536, 3.59

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