The natural gas weekly chart continues to show bullish technical signals possibly indicating a market reversal is in progress.
The natural gas market set a 2015 spot contract at 2.443 low
the first week of May which was followed by a 4 week rally higher.
The market then sold back off from the 3.105 high down to a
2.556 low two weeks ago. The 2.556 low was technically important as it
held above the previous 2.443 low as support.
The inability for the market to push down to a new price low
led to buying last week which has continued into today’s early trade.
This current market low is technically similar to the low
set back in April 2012 which ended up being a multi-year price low for natural
gas.
If the natural gas market closes up Friday for a second
week in a row, it could be an indication the trend is turning back
higher. A breakout above the 3.105 high is needed to turn the trend back
up.
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