Breakout

Range Resources Corp. CEO John Pinkerton said he believes 2012 will be “a breakout year” for the company as it ramps up production in the Marcellus Shale and develops assets in other plays to replace those in the Barnett Shale that were sold in April.

Range Resources Corp. CEO John Pinkerton said he believes 2012 will be “a breakout year” for the company as it ramps up production in the Marcellus Shale and develops assets in other plays to replace those in the Barnett Shale that were sold in April.

Not ready to back of off its 36.9 cent jump Monday, the June natural gas futures contract instead continued on its upward path, recording a modest gain Tuesday of 3.8 cents to close at $6.269, while trading within a $6.235-6.36 range.

For just the second time in three months, natural gas futuresposted a net gain for the week ending Friday as traders foughttheir way out of a bear trap that enticed more than a few sellersthe week prior. After plumbing to new three-and-a-half-month lowsdown to $4.87 on March 15, the April contract surged higher lastweek to close at $5.273.

Gas futures observers concluded Tuesday’s 6.7-cent slide was afalse breakout to the downside because May was unable to breakthrough support yesterday at $2.82 and rebounded a healthy 6.6cents on the day to $2.888. The high for the day was $2.900, whilethe low was $2.820. The three-month summer strip rose 5.7 cents to$2.918.

It was no secret what bull traders in the natural gas pit had todo yesterday in order to propel the market higher; the charts toldthe story.

The April Nymex contract gained another 6.1 cents to $2.300 onThursday, as the contract continued to move higher following thebreakout from its recent technical trading range. Despite thestrong rally and heavy estimated volume of 72,113 contracts, theupsurge stopped just short of breaking through its next resistancelevel at $2.305.