The March Nymex contract inched 3.2 cents higher to $2.270 onThursday, amid a session sources agreed was once again dominated bytechnicals. “This looks like a very strong trading range, sotoday’s result was to be expected,” a trader said. “March drifted afew cents toward the bottom of its range on Wednesday, so it makessense the contract would move higher today. Because the tradingrange is so tight right now, that is limiting how much March can goup,” he said.
He placed the top of that range at $2.29, but the March took outthat price during the first few minutes of Access trading lastnight. As a result, an East Coast based analyst expects March totry to fill in the chart gap created between $2.32-35, but hedoubts March will have much strength beyond that. “I almost woreshorts today. Weather shouldn’t be much of anything for the nextweek or so, so there will be no real reason to drive spot marketprices higher. Without that cash market direction, there’s reallyno reason for March to surge much higher, unless speculators aresuccessful in doing that,” he said.
If March does rise above $2.35, look for initial resistance at$2.40, a technician told GPI. He places support for March at $2.22,followed by major support marked by failed resistance at $2.18.
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