From yesterday, fundamental reason for calling $4.
Gas at $4 per million British thermal units represents a 50 percent retracement between an intraday high of $6.108 on Jan. 7, 2010, and a 10-year low of $1.902 on April 19, 2012, said Walter Zimmerman, chief technical strategist at the brokerage in Jersey City, New Jersey. Ratio retracement is a tool used to calculate support and resistance levels for gas futures by looking at the midpoint between recent highs and lows.
“If we take out $4, the spring break in natural gas prices, the correction before summer arrives, is going to end up at much higher levels than I would have thought would be the case,” Zimmerman said. “We are still going to see a seasonal pullback. It’s delayed by the delayed appearance of spring.”
Agree. This will get taken down soon. As I stated yesterday, the last 2 days has seen some bearish activity heading into close. Not sure we're quite at the bottom yet though, but getting close for sure. This cold weather is a thorn in the side.