The June 15 natural gas contract rallied up to a 7-week high at 2.935 in Monday's early but couldn't hold the gains as late day selling dropped the contract back toward the 2.800 level. Daily settle for the June contract was at 2.802, down .078 (2.7%).
Further selling dropped the June contract to a 2.785 overnight low holding above 10 day moving average support at 2.780. With moving average support holding on the first test of this 3 week uptrend, buyers have come back in rallying the market higher in today's early trade.
2.880-2.890 is the first area of resistance today followed by the 2.935 weekly high. Longer term resistance is the 2.982 high set in mid-March. The 2.950-3.000 area has been a strong area of resistance for the spot contracts over the past winter.
The 10 and 40 day moving averages have crossed into a bullish alignment along with the RMI short and long term indexes. The summer rally higher may have begun. The 10 day moving average at 2.780 is the first area of resistance followed by the 40 day average at 2.710. As long as the June contract trades above the 40 day average, the trend will remain up.
Technical Indicators: Moving Average Alignment - Neutral-Bullish
Long Term Trend Following Index - Bullish
Short Term Trend Following Index - Bullish
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