All indications pointed to the futures market continuing higheron Wednesday: gains posted in the Tuesday evening Access session, awell bid over the counter market Wednesday morning, and inertiacoming off two days of advances. But when the market openedyesterday a vital component was missing, prompting a beleagueredbull to say “the buyers just didn’t show up [Wednesday] morning.”The September contract meandered down from its open, slipping 2.2cents to close at $2.873.
A Houston trader pointed to the coincidence of the 10 day movingaverage from the continuation chart of $1.929 and psychologicalresistance at the August Henry Hub index price of $1.93 as reasonfor the turnaround. However, he feels strong cash market pricingcould buoy futures in the near term. “We continue to see strongstorage buying despite the current level already in the ground. Andwhy not? There are 81 days left in the injection season and withAugust cash prices trading well below the winter months it makessense to keep putting gas in the ground.”
Resistance stands at $1.93 and $2.00. Support still exists inthe 1.78-81 area, a chartist advised.
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