Prior to the EIA stock report publication this AM, the Henry Hub front month was weakening from the early 580 high. Interestingly, in the five minutes prior to the data release the price collapsed ~0.20, which is curious given that the market was expecting to see a record draw. Perhaps there was chatter regarding the correction to last week's data that resulted in taking some of the bullishness out of the expectations.In any case, the range today tested both the current resistence and support levels, failing to break out of either. A double bottom tested the 550 support and then rallied to close the day with the symmetrical leg up of the double bottom structure.
Wed's trading range effectively closed the gap that opened between last Fri and this Mon, suggesting that the market will move in the direction prices were going when the gap opened, i.e. lower. Given the very bearish near term weather outlook, a substantial test of the 550 support is likely. A sustained close below 550 could take market to ~535 level.