After opening at the pivotal $2.00 level yesterday the Maycontract was held to a tight, 3.5-cent trading range, as tradersseemed willing to sell the prompt contract on moves above $2.00 andbuy the market on moves below $2.00. And similar to the priceaction, yesterday’s close had something for everyone. Bulls foundsolace in the market’s ability to finish above $2.00, while bearswere optimistic following the market’s second-straight day oflosses. May slipped 1.7 cents to $2.013.
One trader was pleasantly surprised by the market’s ability towithstand the early round of selling, adding that he thought the$1.95 level would be tested Tuesday. “Trading was limited to ananemic range today. That is telling about the strength of thismarket. We have filtered out some weak length over the past twosessions, I look for the market to build on today’s settle andpossible retest the $2.09 level as early as Wednesday.”
However, another trader was skeptical the market would rally onan “AGA-day,” referring to the market’s reluctance to make majormoves before the American Gas Association storage report isreleased each Wednesday.
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