The near term trend for the August 15 natural gas contract turned higher on Monday following a breakout and close above both trend line as well as 40 day moving average resistance at the lower-2.800 level.
The August contract has continued higher in the overnight
session currently up over .030 from yesterday’s 2.864 daily settle. With
2.885 resistance broken, 2.940-2.950 now becomes the next upside resistance
followed by 2.970-2.980. Longer term resistance is the 200 day moving
average currently at 3.120.
Former resistance between 2.815-2.830 now becomes the first
area of support today followed by the 10 day moving average at 2.785. A
drop back under these two support levels would turn the near term trend back
down with last week’s 2.644 low being the next area of support followed by the
2.569-2.588 weekly lows.
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