Natural Gas Corner - Technical Update - Lower-2.900 Resistance Holds For A Second Week In A Row

For a second week in a row, a rally higher by the July 15 natural gas contract has stalled at the lower-2.900 level.

In last week’s trade, the July contract topped out at a 2.922 high before turning back lower bottoming out at a 2.744 low two days later.  In this week’s trade, the July contract topped out on Tuesday at a 2.929 high settling at 2.894.

The near term trend at this point remains up with a breakout above yesterday’s 2.929 high turning 3.000-3.030 into the next longer term resistance.  The 3.000-3.150 area has been solid resistance dating back to mid-February.   A breakout above this resistance would turn the longer term  market  trend up.

The 10 and  40 day moving averages are longer term support levels at 2.790 and 2.810.   A close back under both averages will turn the near term trend  back down.

Technical Indicators:  Moving Average Alignment – Neutral

                                        Long Term Trend Following Index – Bearish

                                        Short Term Trend Following Index – Bullish