The trend for the natural gas may be slowly turning back lower as the June 15 contract was unable to rally above 2.824 weekly high resistance on Tuesday.
The contract had several intraday rally attempts pushing up to a 2.821 daily high. As weekly high resistance held, the market tipped back lower into the close with the June finishing the session at 2.780, a loss of .041 or 1.4% for the day.
2.760-2.770 support has been broken in the overnight session turning 2.730 followed closely behind by the 40 day moving average at 2.710 into the next downside support levels. Longer term support is the 10 day average currently at 2.670. A close under the 10 day average will turn the near term trend back down.
2.821-2.844 remains primary resistance. A breakout above this level would be another bullish technical indicator. But if resistance continues to hold today, a down side sell off equal to last week's rally could follow possibly after release of tomorrow's EIA weekly storage report.
Technical Indicators: Moving Average Alignment - Neutral
Long Term Trend Following Index - Bullish
Short Term Trend Following Index - Bullish
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