July Founders Amid Storage ‘Glut’

After posting losses in the Tuesday evening Access session, theJuly Nymex contract gapped lower on the open yesterday, thencontinued to falter closing at $2.106, down a nickel. The contractwas held within a tight 4 cent range between $2.095-135 whichalmost identically mirrored Henry Hub cash prices on the day.Estimated volume was 41,493

June 4, 1998

July Fails to Test Resistance; Slips Lower

The July Nymex contract looked poised to build on gainsyesterday by opening strong then immediately testing resistance inthe $2.20-21 area. However, for the second day in a row resistanceheld, leading to profit taking that sent July spiraling down tosettle at $2.156, a 3.5-cent loss for the day.

June 3, 1998

July Contract Builds on Last Week’s Strength

The July Nymex contract started the week right where it left offlast Friday by probing 2.1 cents higher to settle at $2.191yesterday. After trading higher into the closing bell last Fridaythe market opened lower on Monday, briefly tested short-termsupport, then managed to retrace back up near overhead resistanceat $2.20-21. Estimated volume was a healthy 56,566 contracts.

June 2, 1998

Futures Take Cue from Cash for a Change

Follow-through buying took hold of Nymex trading early, and ledto new session highs before the closing bell last Friday as Julygained 9.9 cents to settle at $2.17. July gapped higher on the openafter coming into the day with solid momentum following Thursday’smodest gains in both the regular and ACCESS trading session. Julyopened at 2.115 Friday, already 4.4 cents above Thursday’s settle.A warming trend for both the weekend and extending into the 6-10day forecast in the South, coupled with some technical momentumwere universally cited as reasons for the strength.

June 1, 1998

June Futures Barely Manage To Expire Above $2

Anyone who thought that the meager 0.1 cent gain the June Nymexcontract turned in on Tuesday would lead to a boring expiration daywas dead wrong. June managed to spew out one more major pricedecline on Wednesday, as the contract went off the board down 7.8cents for the day to settle at $2.017.

May 28, 1998

Futures Traders Ward Off Drop Below $2.00

The June Nymex contract caused quite a bit of excitement onFriday, as the spot month teased both the bears and the bulls. Juneraised the eyebrows of bearish traders when the contractmomentarily reached a low of $1.99, but strong short coveringkicked in at that point, enough to drive the spot month to itsfinal settlement price of $2.094.

May 26, 1998

June Futures Reach Bottom of Trading Range

The June Nymex contract lost another 4.4 cents to $2.134 Monday,as traders continued to test just how long the spot month can holdabove major technical support at $2.11. June reached a low of$2.125 yesterday before last minute buying pushed the contract toits higher settle.

May 19, 1998

June Futures Hold to Their Mid-Range

Amid a day one broker called “perhaps the most boring of any Iremember,” the spot June NYMEX contract nudged 0.4 cents lower tosettle at $2.200. The broker actually said the day was interestingin that a large amount of anticipated activity never materialized.”Every floor trader we spoke to expected when June broke below$2.18, tons of sell stops would kick in between $2.15-17. But therewasn’t diddly squat for stops. In fact, just the opposite happenedin that there was pretty good scaled-down buying once June hit$2.15,” he said.

May 15, 1998

June Futures Home In On Technical Resistance

The June Nymex contract made it 2 for 2 for up days this week,as the spot month gained another 4.1 cents to settle Tuesday at$2.256. Sources said the market followed cash prices higher butalso warmed further gains may be limited. “This is the fifth timeJune has failed to rise above $2.27. Moreover, the daily lows havebeen rising also, so sooner or later something’s going to have togive,” an analyst told GPI.

May 13, 1998

June Futures Break Higher Early, Fall Back Late

After breaking out of its downward trading channel and reachinga high of $2.24, the June Nymex contract fell back considerablyFriday and settled the day up only 0.8 cents to $2.167. Strongtechnical buying and position covering ahead of the weekend seemedto spearhead the rally, but the door to even higher prices slammedshut not long before the closing bell.

May 11, 1998