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Futures Seek Fair Value on Either Side of $2.00

Futures Seek Fair Value on Either Side of $2.00

After opening at the pivotal $2.00 level yesterday the May contract was held to a tight, 3.5-cent trading range, as traders seemed willing to sell the prompt contract on moves above $2.00 and buy the market on moves below $2.00. And similar to the price action, yesterday's close had something for everyone. Bulls found solace in the market's ability to finish above $2.00, while bears were optimistic following the market's second-straight day of losses. May slipped 1.7 cents to $2.013.

One trader was pleasantly surprised by the market's ability to withstand the early round of selling, adding that he thought the $1.95 level would be tested Tuesday. "Trading was limited to an anemic range today. That is telling about the strength of this market. We have filtered out some weak length over the past two sessions, I look for the market to build on today's settle and possible retest the $2.09 level as early as Wednesday."

However, another trader was skeptical the market would rally on an "AGA-day," referring to the market's reluctance to make major moves before the American Gas Association storage report is released each Wednesday.

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