Failing

After opening higher but failing to test resistance at $4.38, natural gas futures checked sideways yesterday as traders caught their breath after Monday’s 25-cent price-erosion. During the open-outcry session Tuesday, the prompt June contract closed at $4.279, just about equally between Monday’s $4.239 close and its $4.32 high.

After thrice testing, but failing to break beneath support Thursday, natural gas futures rebounded at the New York Mercantile Exchange as traders put an end to a nine-day, 70-cent price slide. The June contract received the biggest buying boost, closing 4.4 cents higher at $4.527.

After failing to punch through last Wednesday’s high, natural gas futures traded mostly sideways Monday, as neither bull nor bear could influence prices. At the closing bell, the May contract was 0.3 cents weaker at $5.125.

After pushing higher but failing to fill in a key gap on thedaily chart, the March contract sifted lower yesterday as tradersset their sights on stubborn support in the $5.62 area. As it turnsout, $5.62 was little more than a speed bump as prices dippedeasily below that level in a post-AGA sell-off. The March contractwas hit the hardest, tumbling 50.1 cents to close at $5.518.

After failing to pierce through stubborn support, natural gasfutures rumbled higher yesterday afternoon as traders looked pastbearish storage data to focus on bullish technicals. The Februarycontract received the biggest buying boost, stretching 16.9 centshigher to close at $7.115.

After failing to fill in a looming chart gap on the daily chartsduring Sunday night’s Access trading session, natural gas futuressank lower for much of the session Monday, as day traders rotatedto the short side of the market. That selling pressure enabled theFebruary contract to trim all of Sunday’s advances, finishing 0.2cents down on the day at $7.457.

After failing to punch through Wednesday’s $6.80 low earlyyesterday, natural gas futures shuffled higher Thursday as traderscovered shorts following a five-day price slide. Over that period,the February contract lost nearly $3 or 30% of its value to closeat $6.909 Wednesday afternoon. February closed at $7.136 yesterday,up 22.7 cents for the session.

After twice failing to bust through stubborn resistance at$4.48, natural gas futures gave back early session advancesyesterday to finish just about unchanged on the day. A slim loss inthe September contract was more than offset by modest advances inthe out months. While September finished 0.7 cents lower at $4.406,the 12-month strip was up 2.6 cents at $4.099.

Less than a month after FERC scolded the New York IndependentSystem Operator (NYISO) for failing in its responsibilities byrejecting commercially viable power imports, the ISO is under the gunagain, this time for computer-related snafus that rejectedcommercially viable power exports to the Pennsylvania, New Jersey andMaryland ISO (see Daily GPI, June 1).