The August contact is currently higher in Monday’s early
trade pushing up against 40 day moving average and trend line resistance
between 2.820-2.835.
A breakout above this resistance would be a bullish
indicator for the market turning the near term trend back up with following
resistance at the 2.885 early-June high followed by 2.970-2.980.
If lower-2.800 resistance holds, the primary trend will
remain sideways to lower with the 10 day moving average at 2.770 being the
first area of support followed by last week’s 2.644 low.
Longer term supports levels are the 2.569 and 2.588 weekly
lows set during April and June. A drop under weekly low support
would turn 2.443 into the next downside support.
Friday’s Commitment of Trader’s report showed the funds long
117,552 natural gas futures contracts, up 7,524 from the previous week.
Technical Indicators: Moving Average Alignment –
Neutral-Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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