natural gas

natural gas

Wednesday, May 13, 2015

Natural Gas Corner - Technical Update - Bulls Regain Control On Tuesday



The June 15 natural gas contract rallied off 10 day moving average support on Tuesday completely erasing all of Monday's losses by the session's close.
 
The June contract topped out at a 2.931 high on Tuesday holding under Monday's 2.935 as resistance to settle the day at 2.897, up .095 (3.4%).
 
Bullish 10 and 40 day moving average alignment and bullish short and long term RMI indexes point toward a continuing rally higher over time.  The 2.935 weekly high is the first area of resistance followed by the mid-March high at 2.982.  Longer term resistance is between 3.090-3.100.
 
The 10 day moving average at 2.810 today is primary support with long term support at the 40 day moving average currently 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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